[Ferro-Alloys.com] Royal Nickel announced that the Resources Québec, a resource investment arm run by the province, gave the company $12 million in return for 0.8% of the net smelter return of the Dumont Nickel Project.

Royal Nickel is working toward a full feasibility study for Dumont to be ready by mid-2013.

The Dumont nickel project, according to Royal Nickel, is one of the world’s largest undeveloped nickel sulphide projects. Located 25 kilometres northwest of Amos, Quebec, the Dumont project was issued a full NI 43-101 report last month showing an after-tax NPV of $1.4 billion and a 19.5% after-tax internal rate of return.

The initial capital cost is $1.1 billion. The expansion cost will be another $739 million.

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