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Jien Nickel Acquires 14.7% Stake in Victory Nickel

iconDec 7, 2009 13:16

TORONTO, Aug. 5 -- Victory Nickel Inc.  today announced that it has gained a strong new strategic investor as the result of a transaction whereby Nuinsco Resources Limited (TSX:NWI) has sold its approximate 14.7% interest in Victory Nickel to a subsidiary of Jilin Jien Nickel Industry Co., Ltd. ("Jilin Jien"), along with 11,850,876 rights to acquire 2,962,719 units of Victory Nickel pursuant to the terms of Victory's rights offering dated June 24, 2009.

    Jilin Jien, headquartered in the City of Panshi, Province of Jilin, China, is an integrated mining, smelting, refining and chemical production company. Jilin Jien now owns 49,721,786 Common Shares of Victory Nickel, representing approximately 18.9% of the issued and outstanding Common Shares of Victory. On a partially diluted basis, assuming that Jilin Jien exercises all of its rights pursuant to the terms of the rights offering, Jilin Jien will own approximately 19.9% of the issued and outstanding Common Shares of Victory.

    "Jilin Jien is a strategic investor with credentials, expertise and a long-term outlook that will benefit all Victory Nickel stakeholders," said Victory Nickel's Vice-Chairman and CEO Rene Galipeau. "Its acquisition of this stake in Victory Nickel represents the culmination of a relationship begun some time ago and is a vote of confidence in Victory Nickel as well as in the outlook for the metals markets, and we are pleased to have them as a strategic investor."

    "We have been following the developments of Victory Nickel for quite some time now, and are pleased to have acquired this equity investment," said Mr. Wang Xingrui, Vice-President of Jilin Jien. "Large-scale sulphide nickel deposits in premier mining regions are becoming increasingly difficult to find, but there is significant exploration upside present at Minago, as well as three other Canadian sulphide nickel deposits, Lynn Lake, Mel and Lac Rocher. We see Victory Nickel as an important part of our long term growth plan in nickel."

    About Jilin Jien

    Jilin Jien Nickel Industry Co., Ltd. is an integrated nonferrous metals enterprise, located in Panshi City, Jilin Province (China), and principally involved in the production and sale of nickel sulfate, nickel matte, electrolytic nickel, nickel hydroxide, nickel chloride, copper sulfate, copper concentrate and sulfuric acid. Jilin Jien's shares trade on the A-share market of the Shanghai Stock Exchange with stock code of 600432.

    About Victory Nickel

    Victory Nickel Inc. is a Canadian company with four sulphide nickel deposits containing significant 43-101-compliant nickel resources. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties, Minago, Mel and Lynn Lake in Manitoba, and Lac Rocher in northwestern Quebec, and by evaluating opportunities to expand its nickel asset base. Victory Nickel also owns approximately 6% of Wallbridge Mining Company Limited (TSX:WM) the third largest landholder in the Sudbury Basin.

    (Source: Marketwire)


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