An anonymous director reports
RNC MINERALS ANNOUNCES $9 MILLION BOUGHT DEAL & CONCURRENT PRIVATE PLACEMENT FINANCING
Royal Nickel Corp. has entered into an agreement with Haywood Securities Inc. as sole bookrunner and lead underwriter, on its own behalf and on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, on a bought-deal basis, 13,044,000 common shares of the company at a price of 46 cents per common share for gross proceeds to the company of $6,000,240. Clarksons Platou Securities AS will be engaged as selling agent in the offering.
Concurrent with the offering, the underwriters have also agreed to purchase, on a bought-deal private placement basis, 6,521,000 common shares of the company at a price of 46 cents per common share for additional gross process of $2,999,660. The private placement will be sold to Eric Sprott or his designee.
The company has agreed to grant the underwriters an overallotment option to increase the size of the offering and the private placement by up to an additional 15 per cent, such option being exercisable in whole or in part at any time prior to the date that is 30 days after the closing of the offering or 48 hours prior to closing of the private placement. In the event that the overallotment option is exercised in full, the aggregate gross proceeds of the offering and the private placement to Royal Nickel will be $10,349,885.
The company intends to use the net proceeds of the offering and the private placement to finance exploration and development expenditures at the company's Beta Hunt mine and for general corporate purposes.
The common shares under the offering will be offered by way of short-form prospectus in each of the provinces of Canada, including Quebec, pursuant to National Instrument 44-101 -- Short Form Prospectus Distributions.
The offering and the private placement are scheduled to close on or about Jan. 16, 2019, and are subject to certain conditions including, but not limited to, receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.
About Royal Nickel Corp.
Royal Nickel has a 100-per-cent interest in the producing Beta Hunt gold mine located in Western Australia where a significant high-grade gold discovery -- Father's Day vein -- was recently made. Royal Nickel has initiated a 40,000-metre drill program on near mine exploration targets focused on the Father's Day vein area, results of which will be incorporated into an updated NI 43-101-compliant mineral resource estimate targeted for Q2 2019. Beta Hunt gold resource potential is underpinned by multiple gold shears with gold intersections across a four km strike length which remain open in multiple directions adjacent to an existing five km ramp network. Royal Nickel also has a 28-per-cent interest in a nickel joint venture that owns the Dumont nickel-cobalt project located in the Abitibi region of Quebec which contains the second-largest nickel reserve and eighth-largest cobalt reserve in the world.
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