Orion Mine Finance to Invest US$10 Million in Royal Nickel

Royal Nickel Corp. (TSX:RNX) announced that it’s signed a letter of intent with Orion Mine Finance. Under the agreement, Orion will invest US$10 million in Royal Nickel in exchange for a 0.75-percent net smelter return royalty on the Dumont nickel project. Orion will also receive 10 million common shares of Royal Nickel.

As quoted in the press release:

RNC will have the right to re-purchase 50% of the royalty (0.375%) for a cash payment of US$15 million on the 3rd, 4th or 5th anniversary of closing. The transaction, which is expected to close on or about July 3, 2015, is subject to the settlement of definitive documentation and other customary conditions, including the approval of the Toronto Stock Exchange.

Mark Selby, president and CEO of Royal Nickel, commented:

This financing will allow us to advance our efforts on a number of fronts, including the generation of bulk samples of roasted concentrate to confirm concentrate roasting as a lower cost processing alternative for the Dumont project. We are now working towards completing the capital raising phase of the project in a timely manner to allow us to begin construction activities by early 2016.

Click here to read the full Royal Nickel Corp. (TSX:RNX) press release.