New Stock Arbitrage — Royal Nickel Corporation

The following is our most recent New Stock Arbitrage Opportunity.

Royal Nickel Corp is multi-asset Canada based metal mining company. It is primarily into acquisition, exploration, evaluation, and development of base metal and precious metal properties. Its principal activity is producing Beta Hunt Gold and nickel mine.

RNC announced today that it has entered into an agreement with a syndicate of underwriters co-led by Haywood Securities Inc. and Cantor Fitzgerald Canada Corporation, pursuant to which the Underwriters have agreed to purchase, on a “bought deal” basis, 24,490,000 common shares of the Company, at a price of $0.49 per Common Share, for gross proceeds to the Company of $12,000,100. The Offering is scheduled to close on or about April 18, 2019.

The net proceeds received by the Company from the Offering will be used for exploration drilling and development at Beta Hunt and, in the event that the Company closes the proposed acquisition of the Higginsville Gold Operations from Westgold Resources Limited as further described in the Company’s press release dated March 26, 2019, to fund a portion of the cash component of the purchase price, and for working capital and general corporate purposes.

Stock Name RNC
Stock Symbol RNX
Exchange TSX, Toronto Stock Exchange
Issuer Royal Nickel Corporation
Offering 24,490,000 common shares
Amount C$12,000,100

(C$13,800,115 if the Over-Allotment Option is exercised in full)

Issue Price C$0.49 per Common Share
Drawdown Price C$0.4753 per common share
Closing Date On or about April 18, 2019
Underwriter Haywood Securities Inc. and Cantor Fitzgerald Canada Corporation


After the news was released, RNC stock opening price dropped to C$0.53, slightly higher than the issue price of C$0.49 and is on the rise. We will pay close attention to the price trend of the stock and seek opportunities for new stock arbitrage. Interested group members please keep close attention to future updates.

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