Royal Nickel Corp. (TSX:RNX) announced that it has signed a memorandum of understanding (MOU) with Tsingshan Holding Group Company Ltd., a top innovator in developing vertically integrated nickel pig iron. Among other things, the MOU outlines the companies’ objectives regarding downstream concentrate processing.
The press release notes that the companies have the following expectations:
Tsingshan expects to:
- Construct a plant capable of processing sulphide concentrate
- Consider making an offtake proposal to RNC following the completion by RNC of the Dumont bankable feasibility study. The bankable feasibility study is expected to be completed by mid 2013
- Enter a partnership with RNC at the appropriate time following the completion of the Dumont bankable feasibility study to the satisfaction of Tsingshan.
RNC expects to:
- Continue to share its downstream processing expertise for processing nickel sulphide concentrates with Tsingshan
- Support Tsingshan to secure concentrate feeds
- Consider partnership proposal from Tsingshan