(All amounts expressed in Canadian dollars unless otherwise indicated)
TORONTO, Nov. 9, 2012 /CNW/ - Royal Nickel Corporation ("RNC") (TSX:
RNX) is pleased to report its review of activities and financial
results for the quarter ended September 30, 2012. Third quarter results
are based on the unaudited financial statements for the three months
ended September 30, 2012.
"The third quarter was another period of substantial progress for RNC as
important community, financial and project milestones were achieved,"
said Tyler Mitchelson, President and CEO. "Our near term focus for the
Dumont project is to conclude the previously announced partner process
by early 2013, file the Environmental and Social Impact Assessment by
the end of 2012 and deliver the feasibility study by mid-2013. I
continue to believe RNC is well positioned to unlock the value
potential of the US$1.4 billion NPV8%1 Dumont project. Dumont is one of only a few large scale, low cost
nickel development projects at a sufficiently advanced stage to provide
new production by mid-decade."
THIRD QUARTER and recent Highlights
On August 1, 2012, RNC announced the completion of a $12 million
investment in the Dumont Nickel Project ("Dumont") by Ressources Québec
Inc., a subsidiary of Investissement Québec.
On August 2, 2012, RNC announced the appointment of a Project Director
On September 12, 2012, RNC reported that it had received confidential
non-binding indicative partnership proposals from potential partners
interested in the development of Dumont.
On September 19, 2012, RNC announced that it had selected Norascon as
the mining contractor for the overburden pre-stripping phase of the
On September 26, 2012, RNC and the municipality of Launay announced the
signing of a Provisional Collaboration and Partnership Agreement for
the development of Dumont.
RNC incurred a net loss of $2.9 million for the three months ended
September 30, 2012 compared to a net loss of $1.2 million in the same
period in 2011.
On October 17, 2012, RNC announced it is engaged in discussions with
multiple companies to process concentrate anticipated to be produced at
For the three months ended September 30, 2012, RNC incurred a net loss
of $2.9 million ($0.03 per share) compared to $1.2 million ($0.01 per
share) in the same period last year. The net loss increase of $1.7
million is due primarily to an increase in the deferred income tax
expense for the three months ended September 30, 2012 of $1.1 million.
This is due primarily to the amount of deferred income tax liability
associated with Quebec mining duties recorded in the period as compared
to the prior period. The increase is specifically attributed to the
amount and type of expenditures incurred in the current period as
compared to the prior period.
Targeted Key Near-Term Milestones
Filing of the Environmental and Social Impact Assessment by the end of
Completion of the feasibility study mine plan by the end of 2012
Completion of the project partner process by early 2013
Completion of feasibility study by mid-2013
Highlights of RNC's financial position are as follows (in millions of dollars):
September 30, 2012
December 31, 2011
Tax credits receivable3
1 Includes Cash and Cash equivalents.
2 Working capital is a measure of current assets less current
3 Current portion of tax credits receivable $7.4 million (2011:
$10.5 million) and non-current portion $2.2 million (2011: $0.6
About Royal Nickel Corporation
Royal Nickel Corporation is a mineral resource company focused primarily
on the exploration, evaluation, development and acquisition of base
metal and platinum group metal properties. RNC's principal asset is the
Dumont Nickel Project strategically located in the established Abitibi
mining camp, 25 kilometres northwest of Amos, Quebec. RNC has a strong
management team and Board with over 100 years of mining experience in
the nickel business at Inco and Falconbridge. RNC's common shares and
warrants trade on the TSX under the symbols RNX and RNX.WT.
Unless otherwise indicated, RNC has prepared the technical information
in this news release ("Technical Information") based on information
contained in the pre-feasibility study dated June 22, 2012, relating to
the Company's Dumont Nickel Project and news releases (collectively the
"Disclosure Documents") available under RNC's company profile on SEDAR
at www.sedar.com. Each Disclosure Document was prepared by or under the supervision of a
qualified person (a "Qualified Person") as defined in National
Instrument 43-101 of the Canadian Securities Administrators. Readers
are encouraged to review the full text of the Disclosure Documents
which qualifies the Technical Information. The Technical Information is
subject to the assumptions and qualifications contained in the
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" including
without limitation statements relating to key near-term milestones.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of RNC to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking statements. The pre-feasibility study results are
estimates only, are preliminary in nature and are based on a number of
assumptions, any of which, if incorrect, could materially change the
projected outcome. Until a positive feasibility study has been
completed, and even with the completion of a positive feasibility
study, there are no assurances that Dumont will be placed into
production. Factors that could affect the outcome include, among
others: the actual results of development activities; project delays;
inability to raise the funds necessary to achieve the milestones or
complete development; general business, economic, competitive,
political and social uncertainties; future prices of metals;
availability of alternative nickel sources or substitutes; actual
nickel recovery; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; accidents, labour
disputes and other risks of the mining industry; political instability,
terrorism, insurrection or war; delays in obtaining governmental
approvals, necessary permitting or in the completion of development or
construction activities. For a more detailed discussion of such risks
and other factors that could cause actual results to differ materially
from those expressed or implied by such forward-looking statements,
refer to RNC's filings with Canadian securities regulators available on
SEDAR at www.sedar.com.
Although RNC has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results to differ from those anticipated,
estimated or intended. Forward-looking statements contained herein are
made as of the date of this news release and RNC disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or results or otherwise,
except as required by applicable securities laws.
1Based on US$9.00 per pound long term nickel price and CDN$1.00 = US$0.90
exchange rate. NPV calculated from assumed start of construction,
January 2014 and based on October 2011 real costs. See Technical Report
dated June 22, 2012 available under RNC's profile on www.sedar.com.
SOURCE: Royal Nickel Corporation