TORONTO – Royal Nickel Corp. is buying into two mining companies, thus launching itself into the ranks of nickel and copper-gold producers. It is buying a 67% interest in Salt Lake Mining and a 100% interest in VMS Ventures.
Salt Lake is a private company that owns the Beta Hunt mine in the Kambalda mining district of Australia. The mine resumed nickel production in 2014 and began pouring gold at the end of 2015. Royal Nickel is offering 32.5 million common shares and C$2.5 million in cash for its stake.
VMS Ventures is the 30% owner of the Reed copper mine in northern Manitoba. VMS shareholders will receive 36.0 million Royal Nickel common shares, C$3.5 million in cash, and 29.98 million North American Nickel shares as a dividend in-kind. Hudbay Minerals holds 70% and is the operator of the Reed mine near Snow Lake, MB.
Additional details of the arrangement can be found at RoyalNickel.com.