Royal Nickel Provides Update on Salt Lake Mining Acquisition, Australia
[Click image to enlarge]
Royal Nickel Corporation has provided an update that Salt Lake Mining Pty Ltd. (SLM) has sold its non-core 100 percent-owned Widgiemooltha and Carr Boyd exploration projects for a cash payment of A$1.6 million plus a future contingent payment of A$0.6 million. On February 1, 2016 Royal Nickel announced it reached an agreement to acquire 67 percent interest in SLM. The acquisition is expected to close in March 2016.
“RNC supports the prudent decision to divest of non-core exploration projects by SLM at this time. This transaction will put SLM in a stronger position to focus on the continued development of the Beta Hunt Mine and continuing to ramp up gold production to meet our 2016 guidance of 35-45 k oz and nickel production of 3.5-4.5 kt on a 100 percent basis,” said Mark Selby, president and CEO of Royal Nickel.
The sale has a significant cash flow impact for SLM as the company had budgeted approximately A$1 million in annual statutory holdings costs in respect of the divested properties. The combined cost savings and additional cash of approximately A$2.6 million will provide SLM with additional flexibility in funding the continued development of the Beta Hunt gold resource, which is targeted to generate sustained annual production in excess of 45 k oz of gold when mining in the Western Flanks zone begins in the second half of 2016.
About Royal Nickel
Royal Nickel Corporation is a multi-asset mineral resource company focused primarily on the acquisition, exploration, evaluation and development of base metal and precious 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 Trcesson, 25 kilometers 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.
To stop by Royal Nickel’s website, CLICK HERE
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2016 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
