Royal Nickel Corp. RNKLF

RE:RNC Restructures Royalty at Higginsville, Lower Costs

[CatamaranFund]

Picked up by MT Newswires as well;

Royal Nickel, Morgan Stanley, Restructure Royalty Agreement for Higginsville Gold Operations

08:27 AM EST, 12/19/2019 (MT Newswires) -- Royal Nickel (RNX.TO) on Thursday said it and Morgan Stanley (MS) agreed to restructure an a royalty owed to the investment firm from the company's Higginsville gold project in Australia.

Morgan Stanley held a 1.75% net smelter royalty for Higginsville, plus a 50% participation payment on the difference between realized gold price and A$1,340 per ounce. The restructured agreement cut its participation payment to 27.5% on the first 10,000 ounces of gold the operations produce. Once it surpasses 10,000 ounces in year, it becomes a flat 2% net smelter royalty.

Royal Nickel said the restructured agreement, which takes effect on Jan.1, improves the mine's economics and lets it mine areas previously deemed too unprofitable.

"This revised structure addresses in a meaningful way RNC's strategic objective for additional economic incentive to mine the gold resources on these tenements. We are extremely pleased to have developed an arrangement that we expect will allow us to unlock significant value for both parties."

Royal Nickel shares closed down C$0.005 to C$0.455 Wednesday on the Toronto Stock Exchange.

Price: 0.46, Change: -0.01, Percent Change: -1.09