Company buys interest in Sudbury mining property for $1.5M

Royal Nickel Corporation has purchased for $1.5 million a 25-per-cent interest in Sudbury Platinum Corporation, a subsidiary of Transition Metals Corporation.

Sudbury Platinum holds an option to earn up to 70 per cent of the Aer-Kidd property in the in the Sudbury basin.

“Opportunities to participate in compelling Sudbury area sulphide exploration plays such as Aer-Kidd are rare and I am pleased that RNC will gain exposure to the upside potential of this promising project,” said Mark Selby, interim president and CEO of Royal Nickel Corporation, in a release.

The Aer-Kidd property is located on the Worthington offset dyke, which contains nickel, copper and platinum group element deposits.

“Adding exposure to Aer-Kidd’s exploration potential is an excellent complement to our core asset, the Dumont Nickel Project, at a time when I believe there is significant upside for nickel prices as we enter a period of structural shortage in nickel supply,” Selby added.

The Aer-Kidd property is located centrally between two significant known resources also on the Worthington offset, Vale’s Totten Mine and KGHM’s Victoria project.

Under the terms of the investment, Royal Nickel Corporation acquired six million shares of Sudbury Platinum Corporation at a cost of $0.25 per unit.

While Sudbury Platinum Corporation has an option to earn up to 70 per cent interest in the Aer-Kidd property, the land is owned by Canickel Mining Company Limited.