Toronto, Ontario, Canada-based Royal Nickel Corporation (RNC), which is planning to develop a large nickel mine in Quebec, has received a $12 million investment from Ressources Quebec, a new state-owned entity that was set up to invest in the province's mining projects.
Under the terms of the agreement, Ressources Québec has acquired an interest in the Dumont nickel project and will have the right to receive 0.8 percent of the net smelter return in the project. Tyler Mitchelson, president and CEO of RNC, said, "This investment supports our continued momentum as we work toward delivery of a full feasibility study for Dumont by mid-2013."
RNC also noted that it is currently in discussions with potential partners in Europe, Japan, and China with the goal of securing a partner by late 2012 or early 2013.
The Dumont nickel project, according to Royal Nickel, is one of the world's largest undeveloped nickel sulphide projects. The Dumont deposit contains a probable reserve of 1.06 million mt at 0.27 percent nickel and a measured resource of 359 million mt at 0.29 percent nickel and an indicated resource of 1.3 billion mt at 0.26 percent nickel. The Dumont deposit also remains open at depth, which means potential exists to increase its size. Once in operation, the mine will produce nickel for at least 30 years.