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(AMM) Former Inco execs seek funding for nickel mine

July 30, 2010 - 18:40 GMT Location: NEW YORK

KEYWORDS: Royal Nickel , IPO , Dumont , nickel sulfide

Royal Nickel Corp., led by former Inco Ltd. executives, is looking to raise money through an initial public offering (IPO) and a strategic investor to develop the Dumont nickel sulfide deposit in the Val d'Or region of Quebec.

The Toronto-based company is assembling a banking syndicate to launch an IPO aimed at raising between Canadian $60 and C$100 million ($58.1 million to $96.9 million) to help fund a pre-feasibility study for an open-pit nickel sulfide mine by 2014 that would cost an estimated C$1.5 billion ($1.45 billion).

"We've talked to a number of banks (in Canada)," Tyler Mitchelson, Royal Nickel's president and chief executive officer and former 15-year Inco and Vale Inco veteran, told AMM. "The idea is that by the second half of October, if the market's right, we may go public."

The company also has had talks with Chinese nickel and metal companies about an investment and with Canadian strategic and financial investors, including base metal majors.

"We've talked...

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