Royal Nickel shares jump after Dumont permit

Royal Nickel Corp. (RNX-T) stock jumped 11% on Thursday after announcing it has received the green light for its Dumont nickel project in the Abitibi region of northwestern Quebec.

In afternoon trade the Toronto-based junior had given up some of the gains to change hands at $0.30, still up 9.1% on the Toronto Exchange in more than three times usual volumes.

The volatile counter hit a high of $0.37 in March this year, but like its peers is showing losses year to date, slipping 6% in 2015. Royal Nickel is now worth $33 million on the big board.

Royal Nickel said the Certificate of Authorization from the Quebec Ministry of Sustainable Development, Environment and the Fight Against Climate Change makes it possible to start construction of 100%-owned Dumont once the required financing is obtained.

President and CEO Mark Selby said the company has appointed Swedbank as advisors for a contemplated US$600 million senior bond financing and the company's objective is to complete the capital raising so as to begin construction activities by early 2016.

The magmatic nickel sulphide mine will be one of Canada's largest base metal mines processing more than 100,000 tonnes per day.

Dumont is the world's third largest nickel reserve with contained metal of some 3.1 million tonnes.

Royal Nickel said its expects to employ 500 people over a 33-year project life.

A July 2013 bankable feasibility study estimates construction costs of just under $1.2 billion for the open pit operation and overall sustaining capex of $2.8 billion.

Royal Nickel also owns interests in two advanced stage nickel exploration properties: the Aer-Kidd project near Sudbury, Ontario and the West Raglan project in northern Quebec.