Royal Nickel (TSE:RNX) announced that the Ressources Québec, a resource investment arm run by the province, gave the company $12 million in return for 0.8% of the net smelter return of the Dumont Nickel Project.
Royal Nickel is working toward a full feasibility study for Dumont to be ready by mid-2013.
"(Royal Nickel) intends to use the funds raised under the financing to continue to move forward with activities related to the development of Dumont, including ongoing work on a 43-101 compliant feasibility study and permitting as well as working with its advisor, Rothschild, to bring in a partner for a 30-45% interest in Dumont," said the company in a news release.
"RNC is currently in discussions with potential partners in Europe, Japan, and China with 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. Located 25 kilometres northwest of Amos, Quebec, the Dumont project was issued a full NI 43-101 report last month showing an after-tax NPV of $1.4 billion and a 19.5% after-tax internal rate of return.
The initial capital cost is $1.1 billion. The expansion cost will be another $739 million.