Royal Nickel Corp.said July 11 that it plans to raise C$2 million through a nonbrokered private placementof 3.95 million flow-through shares at 51 Canadian cents apiece.

The financing is expected to close July 20 and proceeds willbe used to fund Canadian exploration expenses, in accordance with Canadian tax laws,at the Qiqavik gold property in Quebec, which is held by Royal Nickel's 68%-ownedTrue North Nickel Inc.unit.

True North has outlined an exploration program at Qiqavik focusedon gold prospecting, mapping, and geophysics to follow up on high-grade gold discoveriesmade in the prior exploration season. The exploration campaign will also includea 1,000-meter drill program.

According to Royal Nickel President and CEO Mark Selby, the resultsof the exploration program will allow the company to spin out the asset or seekjoint venture partners to fund future exploration programs with minimal dilutionfor Royal Nickel.