Mr. Tyler Mitchelson reports
ROYAL NICKEL ANNOUNCES FIRST QUARTER 2013 RESULTS
Royal Nickel Corp. has released a review of activities and financial
results for the quarter ended March 31, 2013.
Tyler Mitchelson, president and chief executive officer, commented: "Yesterday, we signed a
$15-million (U.S.) royalty financing with Red Kite, a leading global mining
investor. This is an important additional step in the financing process
and a significant endorsement of the Dumont project. I am also pleased
with the progress made by RNC's technical teams as we continue to focus
on the delivery of a feasibility study and support work for the
permitting process with respect to the Dumont project. We remain on
track to complete the feasibility study by the middle of this year and
continue to expect we will receive the required permits for Dumont
during the second quarter of 2014. At the corporate level, our focus is
on continued discussions with potential partners aimed at entering into
a development financing arrangement in advance of the completion of the
permitting process."
First quarter and recent highlights
- On May 9, 2013, RNC signed a royalty purchase agreement with RK Mine
Finance (Red Kite). Under the terms of the agreement, Red Kite will
acquire a 1-per-cent net-smelter-return royalty in the Dumont nickel
project for a purchase price of $15-million (U.S.). Closing is expected by
the end of today.
- On March 12, 2013, RNC announced that it had signed a memorandum of
understanding with Tsingshan Holding Group Co. Ltd. The MOU
sets out the objectives of the parties to work together in relation to
downstream concentrate processing, and the potential to enter into an
offtake and/or partnership arrangement. Tsingshan is the second-largest
Chinese stainless steel company, and one of the leading innovators in
the development of vertically integrated nickel pig iron and stainless
steel production operations.
- On April 5, 2013, RNC announced the signing of a memorandum of
understanding with the Abitibiwinni First Nation with respect to the
Dumont nickel project.
- On March 7, 2013, RNC announced that it had closed a private placement
of four million flow-through shares at a price of 50 cents per share for
gross proceeds of $2-million.
- On Jan. 18, 2013, RNC announced the official opening of its new
community liaison office located in the municipality of Launay in the
Abitibi region of Quebec.
- RNC incurred a net loss of $1.8-million for the three months ended March
31, 2013, compared with a net loss of $2.5-million for the same period in
2012.
For the three months ended March 31, 2013, RNC incurred a net loss of
$1.8-million (two cents per share) compared with a net loss of $2.5-million
(three cents per share) in the same period last year. The net loss decrease
of $700,000 is due primarily to lower general and administrative
expenses of $900,000. The decrease in general and administrative
expenses is due primarily to lower consulting fees of $400,000, lower share-based payments expense of $100,000, and lower salaries,
wages and benefits of $100,000.
Targeted future milestones
- Completion of a National Instrument 43-101 feasibility study technical report by
mid-2013;
- Completion of partnership and financing arrangements in advance of the
receipt of permits;
-
Potential placement of long-lead orders driven by the project schedule
and market-driven equipment lead times;
- Receipt of permits in the second quarter of 2014;
-
Start of construction following receipt of permits in 2014;
-
Project commissioning in late 2015 and production ramp-up in 2016.
We seek Safe Harbor.
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