Royal Nickel Acquires 25-percent Interest in Sudbury Platinum

Royal Nickel Corp. (TSX:RNX) announced that it has acquired a 25-percent interest in Sudbury Platinum Corp. for consideration of C$1.5 million.

Sudbury Platinum is a private subsidiary of Transition Metals Corp. (TSXV:XTM) and holds an option to earn up to a 70-percent interest in the Aer-Kidd nickel-copper-platinum-group metals project.

As quoted in the press release:

Under the terms of the investment, RNC has acquired 6 million units of SPC (‘Unit’) at a price of CDN$0.25 per Unit representing a total consideration of CDN$1.5 million. Each Unit consists of one (1) SPC common share (‘Common Share’) and one (1) SPC common share purchase warrant (‘Warrant’). Each Warrant entitles the holder to acquire one (1) Common Share of SPC for a period of eighteen (18) months from the date of issue, at an exercise price of $0.45 per share. Currently, SPC’s main asset is an option to earn up to 70% interest in the Aer-Kidd property which is 100%-owned by Canickel Mining Company Limited.

• Provided RNC holds at least a 10% equity position in SPC, RNC will have a pre-emptive right to maintain its pro rata share position on all subsequent equity financings for a period of 18 months from the closing of the financing. 
• Provided RNC holds more than 15% of the equity of SPC, it is entitled to appoint one director to the SPC board.

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

Opportunities to participate in compelling Sudbury area sulphide exploration plays such as Aer-Kidd are rare and I am pleased that RNC will gain exposure to the upside potential of this promising project. I am very enthusiastic about Aer-Kidd’s untested potential at depth given its location on the Worthington offset dyke between known high grade Ni-Cu-PGE resources at the Totten mine (Vale) and the Victoria project (KGHM).

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