Royal NickelCorp. said July 21 that it completed a nonbrokered privateplacement financing for gross proceeds of about C$1.7 million.

Royal Nickel issued a total of 3,274,000 flow-through sharesat 51 cents each. The company had been looking to raise C$2 million through a private placementof 3.95 million flow-through shares.

The company will use the offering's proceeds to fundCanadian exploration expenses related to its Qiqavik gold property in northernQuebec, which the company holds through its 68%-owned unit True North Nickel.True North Nickel has outlined a C$3.0 million exploration program at theproperty to focus on gold prospecting, mapping and geophysics. The rest of thefunding for this project will be satisfied by Royal Nickel's 32% equity partnerat True North Nickel and by Canadian exploration expenses-eligible flow-throughfunds already held by the company and its units.

Royal Nickel President and CEO Mark Selby said the companyhopes the results from the exploration program will position it to jointventure or spin off the asset to allow funding of future programs with minimaldilution.