TORONTO, Aug. 11, 2014 /CNW/ - Royal Nickel Corporation ("RNC") (TSX: RNX) is pleased to announce that Sudbury Platinum Corporation ("SPC"), a private company in which RNC has an interest, plans to exercise its Right of First Refusal to purchase CaNickel Mining Company Limited's ("CaNickel") 100% interest in the Aer-Kidd Project in Sudbury Ontario for a cash payment of $1,250,000. By doing so, the Option and Joint Venture Agreement currently in place between SPC and CaNickel dated October 1, 2012 will be terminated.
"I am very excited that SPC has decided to purchase CaNickel's 100% interest in the Aer-Kidd Project after identifying some very compelling exploration targets. The acquisition will, when executed, simplify the ownership structure from the current Option and JV arrangement and simplify plans to advance the project. RNC continues to be enthusiastic about Aer-Kidd's untested potential given its location on the Worthington offset dyke between known high grade Ni-Cu-PGE resources at the Totten mine (Vale) and the Victoria project (KGHM)," said Mark Selby, President and CEO of Royal Nickel Corporation. "The exploration activities at Aer-Kidd are being led by Scott McLean and the highly skilled and experienced SPC management team, who has a track record of consistent exploration success in the Sudbury Basin such as discovering Glencore's Nickel Rim South mine."
SPC and Transition Metals Corp. (Transition) also announced that SPC has closed a non-brokered private placement for gross proceeds of $637,500. SPC issued 1,720,000 units and 830,000 flow through shares each at a price of $0.25. Each unit consisted of one common share and one common share purchase warrant entitling the holder to purchase an additional common share in SPC at $0.45 for a period of eighteen months. Transition Metals Corp. currently owns 57% of SPC and RNC owns approximately 23% of SPC.
Aer-Kidd is a 280 hectare property covering approximately 1.4 kilometres of the Worthington Offset (Worthington offset) Dyke located near Worthington, Ontario in the Sudbury Basin area. Past production on the Aer-Kidd property has come from numerous shallow underground and surface workings (Howland Pit, Rosen and Robinson Deposits).
The Aer-Kidd property is located centrally between two significant known resources also on the Worthington offset, Vale's Totten mine (10.1 million tonnes grading 1.5% Ni, 1.97% Cu, 4.8g/t PGM)1 and KGHM's Victoria project (14.5 million tonnes grading 2.5% Ni, 2.5% Cu, 7.6 g/t PGM)2.
The disclosure of the technical information contained in this news release has been approved by Alger St-Jean, P. Geo., Vice President Exploration of RNC, and a Qualified Person under NI 43-101.
About Sudbury Platinum Corporation
SPC is a Canadian private corporation focused on exploring for nickel, copper and platinum group metals in the Sudbury Area. SPC is evaluating the Aer-Kidd Property, an advanced exploration property located on the prospective Worthington Offset dyke in the heart of the Sudbury mining camp. It also holds a 100% interest in the Owen Nickel Property. Additional information regarding the company and its projects can be found at www.sudburyplatinumcorp.com.
About Royal Nickel Corporation
Royal Nickel Corporation is a 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.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" including without limitation statements relating to the upside and potential of the Aer-Kidd property.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RNC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: future prices and the supply of metals; the results of drilling at Aer-Kidd; inability on the part of SPC to raise the money necessary to incur the expenditures required to earn an interest in the Aer-Kidd property; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to RNC's filings with Canadian securities regulators available on SEDAR at www.sedar.com.
Although RNC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and RNC disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
Information Concerning Aer Kidd and Neighbouring Properties:
Information concerning Aer-Kidd and neighbouring properties in this news release is taken from sources, some of which are historical, that RNC believes to be reliable, but RNC has not verified the information and does not assume responsibility for such third party information.
1 Resource reported by Inco Limited in news release dated January 18,
2 Resource reported by KGHM in news release dated January 16, 2012
SOURCE Royal Nickel Corporation