RNC Minerals Announces Joint Venture with Waterton to Acquire, Develop and Operate Nickel Assets

RNC Minerals (TSX: RNX) (“RNC” or the “Company”) is pleased to announce that it has entered into a joint venture arrangement (the “JV Arrangement”) with Waterton Precious Metals Fund II Cayman, LP and Waterton Mining Parallel Fund Onshore Master, LP (collectively, “Waterton”). Pursuant to the terms of the JV Arrangement, Waterton has agreed to acquire 50% of RNC’s interest in the Dumont Nickel Project for US$22.5 million (C$30 million) in cash, implying a value of C$60 million for 100% of the asset. RNC and Waterton will also inject US$17.5 million (for a total of US$35 million) into a newly established limited partnership (the “JV Entity”) that will own Dumont, support its advancement to development, and acquire high quality nickel assets globally. The JV Arrangement provides for a unique structure within the resource sector and sets forth a partnership between an innovative mining private equity firm and a leading nickel executive team to create and unlock value within the nickel industry. The JV Entity’s objective is to establish a pure play nickel company with multiple projects operating in stable jurisdictions.
As quoted in the press release:

Mark Selby, President and CEO of RNC, commented, “This transaction clearly highlights the value of the Dumont Nickel Project and will allow us to continue to advance Dumont. RNC is very pleased to partner with Waterton Global Resource Management, Inc. (“WGRM”), a leading mining private equity firm with exceptional in-house mining and investment expertise. WGRM’s unique approach combines proprietary expertise and patient capital over the course of the mining cycle and provides our joint venture with the ability to advance nickel projects on an opportunistic timeframe. Our team has identified a number of targets to pursue through this JV Entity with minimal or no dilution to existing RNC shareholders.”

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