Patriot Battery targets 400,000 t/y at Quebec lithium project
Patriot plans to make a final investment decision by 2027, begin construction in 2028, and start production in early 2029.
TORONTO, June 29, 2015 /CNW/ – Royal Nickel Corporation (“RNC”) (TSX: RNX) is pleased to announce that it has signed a letter of intent with Orion Mine Finance (“Orion”) under which Orion will invest US$10 million (C$12.4 million1) in RNC in exchange for a 0.75% net smelter return royalty in the Dumont Nickel Project and 10 million RNC common shares (to be issued at $0.395 per share, the June 26, 2015 closing price of the RNC common shares on the TSX).
RNC will have the right to re-purchase 50% of the royalty (0.375%) for a cash payment of US$15 million on the 3rd, 4th or 5th anniversary of closing. The transaction, which is expected to close on or about July 3, 2015, is subject to the settlement of definitive documentation and other customary conditions, including the approval of the Toronto Stock Exchange.
“This financing will allow us to advance our efforts on a number of fronts, including the generation of bulk samples of roasted concentrate to confirm concentrate roasting as a lower cost processing alternative for the Dumont project. We are now working towards completing the capital raising phase of the project in a timely manner to allow us to begin construction activities by early 2016” said Mark Selby, President and CEO of RNC.
About Royal Nickel Corporation
Royal Nickel Corporation is a multi-asset mineral resource company focused primarily on the acquisition, exploration, evaluation and development of base metal and platinum group metal properties. RNC’s principal asset is the Dumont Nickel Project strategically located in the established Abitibi mining camp, in the municipalities of Launay and Trécesson, 25 kilometres northwest of Amos, Quebec. RNC also owns interests in two advanced stage nickel exploration properties: the Aer-Kidd project near Sudbury, Ontario and the West Raglan project in northern Quebec. RNC has a strong management team and Board with over 100 years of mining experience in the nickel business at Inco and Falconbridge. RNC’s common shares and warrants trade on the TSX under the symbols RNX and RNX.WT.
