Toronto-based explorer Royal Nickel (TSX: RNX) has seen its shares climb more than 50% in the past week, after providing the market an upbeat outlook on nickel prices and announcing that it has acquired a minority interest in a private company that’s exploring a prospective nickel property in Sudbury, ON.
Royal Nickel has bought a 25% stake in Sudbury Platinum Corp. (SPC), a private subsidiary of Transition Metals Corp. (TSXV: QUX), which holds an option to earn up to 70% of the Aer-Kidd nickel-copper-platinum group metals project for $1.5 million. Under that deal, Royal Nickel acquired 6 million SPC units, consisting of one share and one warrant, priced at 25¢ apiece. Holders could exchange each warrant for one share over an 18-month period for 45¢.
On a recent conference call, Royal Nickel’s interim CEO Mark Selby said the acquisition fits the company’s strategy of adding high quality nickel projects to its portfolio given an anticipated shortage of that metal in mid-2015. “We’re always looking for the best opportunities in the nickel space, and we believe that the Aer-Kidd property is truly one of the great exploration opportunities in the world.”
Read the entire story at NorthernMiner.com/news/royal-nickel
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