Royal Nickel Corp. RNKLF

RE:Back-in clause to get back to 50% of Dumont

[pierreg]

 

Hello goldhunter11 good find. In response to the buy-back question @lexcon responded on CEO.ca today:

«@PierreG01599501 as a follow up to GH11 comment. I was curious whether there was any clause in the existing JV contract that spelled out whether or not, and how, RNX may be able to repurchase the 22% they gave up when Waterton exercised their option (after RNX withdrew money from the JV to pay bills prior to FDV).

So, back shortly after the FDV news, and the size of the money raised (where RNX was able to pay off debt) I sent an email to Rob asking him if there was already a pre-defined mechanism in the JV to repurchase. His response was there is no existing mechanism established to allow them to buy back the 22%. IF they decided to pursue that it would have to be negotiated with Waterton.»

«@PierreG01599501 I am glad that RNX retained the operation and management of the Dumont project. GH11 indicated that Waterton would not have the technical expertise to do so....but that is not the case.

From the Wtaerton website, the section who we are
"Waterton Global’s in-house technical professionals are bifurcated into two specialty teams: the Project Evaluations Team and the Project Development and Operations Team.

The Project Evaluations Team and the Project Development and Operations Team have significant experience in the following key mining disciplines:

Geology
Geostatistics
Mining engineering (open pit and underground)
Metallurgical engineering
Process engineering and plant design
Project development"

It looks to me that they would have the expertise, and the fact that RNX kept control of the project was and still is a big plus IMO.»

https://www.watertonglobal.com/firm/mining-expertise/

@LHPlanner a mining engineer responding to @lexcon wrote: «Waterton will use their expertise to advance the project as far as necessary for them to make a highly profitable exit...  In my opinion, I see them likely trying to flip their stake following the completion of the FS (especially if it is positive)... I've said it before but their investment horizon/criteria makes it unlikely they'll be involved in constructing the project..»