NEWS RELEASE: RNC Minerals Announces Joint Venture With Waterton To Acquire, Develop And Operate Nickel Assets

TORONTO, March 22, 2017 /CNW/ – RNC Minerals (TSX: RNX) (“RNC” or the “Company”) is pleased to announce that it has entered into a joint venture arrangement (the “JV Arrangement”) with Waterton Precious Metals Fund II Cayman, LP and Waterton Mining Parallel Fund Onshore Master, LP (collectively, “Waterton”). Pursuant to the terms of the JV Arrangement, Waterton has agreed to acquire 50% of RNC’s interest in the Dumont Nickel Project for US$22.5 million (C$30 million) in cash, implying a value of C$60 million for 100% of the asset.

RNC and Waterton will also inject US$17.5 million (for a total of US$35 million) into a newly established limited partnership (the “JV Entity”) that will own Dumont, support its advancement to development, and acquire high quality nickel assets globally.

The JV Arrangement provides for a unique structure within the resource sector and sets forth a partnership between an innovative mining private equity firm and a leading nickel executive team to create and unlock value within the nickel industry. The JV Entity’s objective is to establish a pure play nickel company with multiple projects operating in stable jurisdictions.

Mark Selby, President and CEO of RNC, commented, “This transaction clearly highlights the value of the Dumont Nickel Project and will allow us to continue to advance Dumont. RNC is very pleased to partner with Waterton Global Resource Management, Inc. (“WGRM”), a leading mining private equity firm with exceptional in-house mining and investment expertise. WGRM’s unique approach combines proprietary expertise and patient capital over the course of the mining cycle and provides our joint venture with the ability to advance nickel projects on an opportunistic timeframe. Our team has identified a number of targets to pursue through this JV Entity with minimal or no dilution to existing RNC shareholders.”

Mr. Selby continued, “In addition to the nickel acquisition strategy with WGRM, RNC Minerals is poised to create value for shareholders through multiple platforms: the ongoing ramp-up of gold production at the Beta Hunt Mine in Australia with the added option potential of our recently announced agreement with Westgold, the contribution of cash flow from the Reed Mine in Canada in 2017, and the recently announced spinout of our Qiqavik and True North Nickel assets into a separate entity. Today’s announcement of the JV Entity represents both a significant recognition of value in our Dumont project, and an opportunity to capture further value in the nickel market.”

Isser Elishis, Managing Partner and CIO of WGRM, commented, “We are very pleased to have reached a JV Arrangement with RNC on the Dumont project. This arrangement provides the foundation for us to collaborate on future opportunities to acquire and develop high-quality nickel assets. We look forward to working closely with and combining our expertise with RNC’s management team and board of directors.”

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