Royal Nickel Corp.said May 3 that it has entered into an agreement with underwriters co-led by HaywoodSecurities Inc. and Beacon Securities Ltd., which agreed to purchase, on a bought-dealbasis, 17,060,000 of the company's common shares at 51 Canadian cents each for grossproceeds of C$8.7 million.
The company granted the underwriters an overallotment option,which expires 30 days after the closing of the offering, to purchase up to an additional15% of the offering.
The offering is expected to close on or about May 26.
Net proceeds will be used for exploration and development ofthe Beta Hunt nickel-goldmine in Western Australia as well as for working capital and general corporate purposes.
Royal Nickel intends to acquirethe remaining 34% of Beta Hunt by the end of the month through issuing 24,324,066shares. The acquisition is subject to shareholder approval at the annual and specialmeeting of shareholders to be held May 18.