The Financial Post reports in its Tuesday edition that Royal Nickel has unexpectedly struck a motherlode of gold.
The Post's Gabriel Friedman writes that Toronto-based junior Royal Nickel announced Sunday night that its employees in Australia at the Beta Hunt mine -- which the company has been trying to sell since April -- removed a golden boulder. Within a single cube of earth that measured roughly three metres wide, three metres long, and three metres deep, they found 9,000 ounces of gold, including two large lumps, all told worth around $14-million or $15-million at current prices.
That is equivalent to roughly 40 per cent of Royal Nickel's $35-million market capitalization as of last week.
"It was a nickel mine for years and years," said Mark Selby, chief executive officer. "But we bought it because there were a bunch of gold deposits sitting beneath it."
Mr. Selby said that he heard the news when he woke up in the middle of the night last Monday to use the bathroom.
"I flip my phone on and find out," he said. "I didn't go back to bed. You don't find 2,000-ounce hunks of gold very often, so it's good to be lucky."
Royal Nickel closed Monday at 17.5 cents, up 8.5 cents on the Toronto Stock Exchange.
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