JOHANNEBURG (miningweekly.com) – Dual-listed Royal Nickel Corporation (RNC) has completed its non-brokered private placement financing, having issued a total of 3 274 000 flow-through shares of the company at a price of $0.51 per flow-through share, for gross proceeds of $1.7-million.
The proceeds from the offering will be used to fund Canadian exploration expenses (CEE) related to RNC's Qiqavik property, located in norther Québec.
Qiqavik is an exploration stage property held by RNC through its 68%-owned subsidiary True North Nickel (TNN).
TNN has outlined a $3-million exploration programme at Qiqavik focused on gold prospecting, mapping and geophysics, which will follow up on high-grade gold discoveries made during the prior exploration season and initiate a 1 000 m drilling programme.
The remaining funding required for the $3-million exploration programme will be satisfied by RNC's 32% equity partner at TNN, and by CEE-eligible flow-through funds already held by RNC and its subsidiaries.
"With funding support from our partner at TNN, RNC is able to leverage this $1.7-million placement into a $3-million exploration programme. The 2015 prospecting results demonstrated the potential for the Qiqavik project to host important new gold and copper deposits,” said CEO Mark Selby.
The offering took place by way of a private placement to qualified investors in certain provinces of Canada and otherwise in those jurisdictions where the offering could lawfully be made.
The securities issued under the offering have a hold period of four months and one day from closing.