TORONTO, March 26, 2013 /CNW/ - Royal Nickel Corporation (TSX: RNX) ("RNC") is pleased to report its review of activities and financial results for the year ended December 31, 2012. All amounts are expressed in Canadian dollars, unless otherwise noted, and are based on the audited financial statements for the twelve months ended December 31, 2012, unless otherwise noted.
Tyler Mitchelson, President and CEO, commented, "Despite challenging economic conditions over much of the past year, RNC has continued to advance the development of the Dumont Nickel Project. Progress has been made in many areas such as the delivery of a robust revised pre-feasibility study, advancement of the permitting process with the filing of the Environmental and Social Impact Assessment and recently the formation of an innovative strategic alliance with a leading Chinese stainless steel producer. To reach these important milestones we have leveraged one of RNC's key strengths — the depth and breadth of the experienced team we have assembled. I am confident our team will continue to deliver results that will help realize RNC's value potential with upcoming critical milestones including the delivery of a bankable feasibility study, continued work towards completing partnership/financing arrangements and receiving permits as key near and mid-term goals."
2012 and recent Highlights
For the three months ended December 31, 2012, RNC incurred a net loss of $1.6 million ($0.02 per share) compared to a net loss of $1.8 million ($0.03 per share) in the same period last year. The lower loss is primarily due to a decrease in general and administrative expenses of $0.8 million, which reflects a $0.8 million reduction in the non-cash share based payments charge partially offset by an increase in the deferred income tax expense of $0.6 million. For the year ended December 31, 2012, RNC incurred a net loss of $9.2 million ($0.10 per share) compared to a net loss of $7.8 million ($0.09 per share) in the same period last year. The increased net loss is primarily due to increased consulting fees of $0.9 million due to higher project finance advisory costs and an increase in the non-cash share based payments charge of $0.7 million due to a lower mark-to-market recovery adjustment.
|1||Based on US$9.00 per pound long term nickel price and CDN$1.00 = US$0.90 exchange rate. NPV and IRR calculated from assumed start of construction, January 2014 and based on October 2011 real costs.|
|2||C1 cash costs are defined as the cash cost incurred at each processing stage, from mining through to recoverable nickel delivered to the market, net of by-product credits.|
Targeted Future Milestones
Highlights of RNC's financial position are as follows (in millions of dollars):
|December 31, 2012||December 31, 2011|
|Tax credits receivable3||9.7||11.1|
|1||Includes Cash and Cash equivalents.|
|2||Working capital is a measure of current assets less current liabilities|
|3||Current portion of tax credits receivable is $7.3 million (2011: $10.5 million) and non-current portion is $2.4 million (2011: $0.6 million)|
Other Matters - Adoption of New By-laws
On March 26, 2013, RNC's board revised its corporate by-laws to reflect changes to the Canada Business Corporations Act ("CBCA"). In so doing, RNC took the opportunity to modernize its by-laws. The new by-laws are effective immediately and, in accordance with the CBCA, will be subject to confirmation by shareholders at RNC's next meeting of shareholders. Among other things, the new by-laws contain advance notice provisions, the purpose of which is to require that advance notice be provided to RNC in circumstances where nominations of persons for election to the board of directors of RNC are made by shareholders other than pursuant to the requisition of a meeting or a shareholder proposal in accordance with the CBCA.
Among other things, the advance notice provision fixes a deadline by which shareholders must provide notice to RNC of nominations for election to the board. The notice must include all information that would be required to be disclosed in a dissident proxy circular in connection with the solicitations of proxies for the election of directors under applicable corporate and securities laws relating to the shareholder making the nominations (as if such shareholder were a dissident soliciting proxies) and each person that such shareholder proposes to nominate for election as a director. In addition, the notice must provide information as to the shareholdings of the shareholder making the nominations, confirmation that the proposed nominees meet the qualifications of directors and residency requirements imposed by corporate law, and confirmation as to whether each proposed nominee is independent for the purposes of National Instrument 52-110. The deadline by which the notice must be delivered to RNC is set forth in the table below.
|Meeting Type||Nomination Deadline|
|Annual meeting of
|Either (a) no fewer than 30 days and no more than 65 days prior to the date of the meeting or (b) no more than 10 days after the date of the first public filing or announcement of the date of the meeting, if the meeting is called for a date that is fewer than 50 days after the date of such public filing or announcement.|
|Special meeting of shareholders (which is not also an annual meeting)||No more than 15 days after the date of the first public filing or announcement of the date of the meeting.|
A full copy of the new by-law is being filed under RNC's profile on SEDAR at www.sedar.com.
About Royal Nickel Corporation
Royal Nickel Corporation is a mineral resource company focused primarily on the exploration, evaluation, development and acquisition of base metal and platinum group metal properties. RNC's principal asset is the Dumont Nickel Project strategically located in the established Abitibi mining camp, 25 kilometres northwest of Amos, Quebec. RNC has a strong management team and Board with over 100 years of mining experience in the nickel business at Inco and Falconbridge. RNC's common shares trade on the TSX under the symbol RNX.
Unless otherwise indicated, RNC has prepared the technical information in this news release ("Technical Information") based on information contained in the pre-feasibility study dated June 22, 2012, relating to the Corporation's Dumont Nickel Project and news releases (collectively the "Disclosure Documents") available under RNC's company profile on SEDAR at www.sedar.com. Each Disclosure Document was prepared by or under the supervision of a qualified person (a "Qualified Person") as defined in National Instrument 43-101 of the Canadian Securities Administrators. Readers are encouraged to review the full text of the Disclosure Documents which qualifies the Technical Information. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure Documents.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" including without limitation statements relating to key milestones for 2013 and 2014.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RNC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The pre-feasibility study results are estimates only, are preliminary in nature and are based on a number of assumptions, any of which, if incorrect, could materially change the projected outcome. Until a positive feasibility study has been completed, and even with the completion of a positive feasibility study, there are no assurances that Dumont will be placed into production. Factors that could affect the outcome include, among others: the actual results of development activities; project delays; inability to raise the funds necessary to achieve the milestones or complete development; general business, economic, competitive, political and social uncertainties; future prices of metals; availability of alternative nickel sources or substitutes; actual nickel recovery; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to RNC's filings with Canadian securities regulators available on SEDAR at www.sedar.com.
Although RNC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and RNC disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
SOURCE: Royal Nickel Corporation
Director, Investor Relations
T: (416) 363-0649
Mélanie Corriveau (French contact)
Community Relations Coordinator
T: (819) 727-3777
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