TORONTO, Feb. 27, 2015 /CNW/ - Royal Nickel Corporation
(TSX: RNX) ("RNC") is pleased to report its review of activities
and financial results for the year ended December 31, 2014. All amounts are expressed in
Canadian dollars, unless otherwise noted, and are based on the
audited financial statements for the year ended December 31, 2014, unless otherwise noted.
Mark Selby, President and CEO,
commented, "2014 saw RNC strengthen its' position as a nickel
focused TSX listed stock through the addition of interests in two
advanced nickel-copper-PGE exploration properties – West Raglan in
Quebec and Aer-Kidd in the
Sudbury Basin. These properties,
along with RNC's flagship Dumont Nickel Project, leave RNC well
positioned to benefit from what I believe will be an exciting
period for the nickel market, beginning as supply deficits are
expected to emerge and support a strong price environment. RNC is
currently focused on its' near term goals of securing the main
environmental permit and advancing ongoing partnership and
financing discussion for the Dumont project."
2014 Highlights
- On March 24, 2014, RNC reported
that Tsingshan Holding Group ("Tsingshan"), a party with whom RNC
entered a strategic alliance in March
2013, is currently constructing the world's first integrated
nickel pig iron ("NPI") plant to utilize nickel sulphide
concentrate as part of the stainless steel production process. The
plant is expected to begin operation this year. This significant
innovation represents the first time that nickel sulphide
concentrate will be directly used to create stainless steel. This
innovation offers significant potential benefits to the producers
of suitable nickel sulphide concentrate feed including lower costs
due to simpler processing compared to traditional smelting and
refining, and greater flexibility for more potential partners and
customers. This plant is also expected to be possibly capable of
handling nickel sulphide concentrate anticipated to be produced
from the Dumont Nickel Project.
- On April 2, 2014, RNC announced
the publication of the Dumont Nickel Project's Environmental and
Social Impact Assessment ("ESIA") by the
Quebec Ministry of Sustainable Development, Environment, Wildlife
and Parks through the agency of the Bureau d'audiences publiques
sur l'environnement ("BAPE"). This was an
important step in the permitting process. The BAPE's public
information and consultation processes were completed in May and
June.
- On April 14, 2014, RNC announced
it had gained exposure to the highly prospective Aer-Kidd
nickel-copper-platinum group metals project in Sudbury through the acquisition of a 25%
interest in Sudbury Platinum Corporation for cash consideration of
$1.5 million.
- On June 18, 2014, RNC announced
that it had closed the transaction to acquire an approximate 56%
interest in True North Nickel Inc. ("TNN"), a private company the main asset of which is a 100%
interest in the West Raglan nickel sulphide project in Quebec.
- On July 11, 2014, RNC announced
that it had closed its previously announced public offering of
units ("Units"). Pursuant to the offering,
RNC issued 8,340,000 Units at a price of $0.60 per Unit for aggregate gross proceeds of
$5 million. Each Unit was comprised
of one common share of RNC and one-half of one common share
purchase warrant.
- On July 17, 2014, RNC announced
that the underwriters of its public offering of 8,340,000 Units
that closed on July 11, 2014, had
exercised their over-allotment option and have purchased an
additional 1,251,000 Units at a purchase price of $0.60 per Unit. The gross proceeds to RNC
resulting from the exercise of the over-allotment option are
$0.75 million, for total gross
proceeds from the offering of $5.75
million.
- On July 29, 2014, RNC announced
that the NI 43-101 compliant technical report for the West Raglan
Project had been filed under RNC's profile on SEDAR at
www.sedar.com.
- On August 26, 2014, RNC announced
that Sudbury Platinum Corporation ("SPC"),
a private company in which RNC has an interest, had completed the
purchase of a 100% interest in the mineral rights of the Aer-Kidd
Project ("Aer-Kidd") from CaNickel Mining
Company Limited ("CaNickel").
- On September 25, 2014, RNC
announced the publication of a report from the BAPE that concludes
that the development of the Dumont Nickel Project is acceptable,
provided adequate mitigation measures are implemented.
- On October 14, 2014, RNC
announced that TNN, 100% owner of the West Raglan Nickel Project
("West Raglan"),
and SPC, 100% owner of Aer-Kidd, have successfully raised
$0.8 million and $2.0 million, respectively. The financing
completed by TNN was provided by its shareholders, RNC (as to 56%)
and Dundee Resources Limited (as to 44%).
Targeted Future Milestones
Royal Nickel has the following
targeted key milestones to achieve the development of the Dumont
Nickel Project:
- Completion of partnership and financing arrangements;
- Receipt of main permit during the first quarter of 2015;
- Estimated construction schedule of 24 months post successful
permitting and securing financing and completion of detailed
engineering;
- Project commissioning is expected to begin in ten to eleven
quarters after permits and financing are in place. Assuming permits
and financing are in place by the end of the first quarter of 2015,
commissioning is targeted to begin by the end of 2017, followed by
production ramp-up in 2018.
Financial Results
For the three months ended December 31,
2014, RNC incurred a net loss of $3.0
million ($0.04 per share),
compared to a net loss of $1.6
million ($0.02 per share) in
the same period last year. The net loss increase of $1.4 million is due primarily to higher mineral
property interests write-down ($1.3
million) and general and administrative expenses
($1.1 million), partially offset by
lower deferred income tax expense ($0.5
million), a gain on dilution of associate ($0.2 million), and unrealized gain on derivative
financial instruments ($0.2
million).
RNC incurred a net loss of $10.0
million ($0.10 per share) for
the year ended December 31, 2014
compared to a net loss of $6.7
million ($0.07 per share) for
the same period in 2013. The net loss increase of $3.3 million is due primarily to higher general
and administrative expenses ($3.0
million) and mineral property interests write-down
($1.3 million) partially offset by a
lower deferred income tax expense ($0.8
million) and gain on dilution of associate ($0.2 million).
Highlights of RNC's financial position are as follows (in
millions of dollars):
|
December 31,
2014
|
December 31,
2013
|
Cash
position1
Working
capital2
Tax credits
receivable3
Total
assets
Shareholder's
equity
|
2.9
1.2
0.5
80.3
66.6
|
11.9
13.5
3.5
74.8
62.6
|
1
|
Includes Cash and
Cash equivalents.
|
2
|
Working capital is a
measure of current assets less current liabilities
|
3
|
Current portion of
tax credits receivable is $0.4 million (2013: $3.3 million) and
non-current portion is $0.1 million (2013: $0.2 million)
|
RNC's ability to operate as a going concern is dependent on its
ability to raise financing. While management has been successful in
securing financing in the past, there can be no assurance that
adequate or sufficient funding will be available in the future, or
available under terms acceptable to RNC.
About Royal Nickel Corporation
Royal Nickel Corporation is a mineral resource company focused
primarily on the acquisition, exploration, evaluation and
development 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, in the
municipalities of Launay and
Trécesson, 25 kilometres northwest of Amos, Quebec. RNC also owns interests in two
advanced stage nickel exploration properties: the Aer-Kidd project
near Sudbury, Ontario and the West
Raglan project in northern 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.
Cautionary Statements Concerning Forward-Looking
Statements
This news release contains
"forward-looking information" including without limitation
statements relating to the liquidity and capital resources of RNC,
the outlook for the nickel market, key milestones for 2014 to 2017,
including timing of receipt of the main permit and the potential of
the Aer-Kidd and West Raglan projects.
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. There are no assurances
that Dumont, or any of RNC's other property interests, will be
placed into production. Factors that could affect the outcome
include, among others: the inability to raise the funds necessary
to achieve the milestones or complete development of Dumont
and inability to raise the funds necessary to advance exploration
activities; the actual results of development activities at Dumont
and exploration activities at Aer-Kidd and West Raglan; project
delays; 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.
SOURCE Royal Nickel Corporation