TORONTO, ONTARIO--(Marketwire - Aug. 4, 2009) - August 4, 2009 - Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX:NI) (www.victorynickel.ca) 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."
Conference Call and Webcast
The Company will hold an investor conference call at 2:00 pm on Wednesday August 5, 2009 to discuss this transaction and to answer any questions shareholders may have. The dial-in numbers to participate are 416-695-6617 and 800-766-6630. The conference call will also be webcast, and can be accessed at http://events.digitalmedia.telus.com/nuinsco/080509/index.php and at the Company's website, www.victorynickel.ca.
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.
For further information, please visit the Company's website at www.victorynickel.ca. Should you wish to receive Company news via email, please email email@example.com and specify "Victory Nickel" in the subject line.
Forward-Looking Information: This news release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow, costs, economic return, net present value, mine life and financial models, mineral resource estimates, potential mineralization, potential mineral resources, timing of possible production, the Company's development plans and objectives and the strategic investment of Jilin Jien in the Company) constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ materially from current expectations include, among other things: failure of the strategic investment of Jilin Jien in the Company to benefit the Company and its stakeholders, uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from estimates and assumptions; uncertainties relating to the availability and costs of financing needed in the future; failure to establish estimated mineral resources; fluctuations in commodity prices and currency exchange rates; inflation; recoveries being less than those indicated by the testwork carried out to date (there can be no assurance that recoveries in small scale laboratory tests will be duplicated in large tests under on-site conditions or during production); changes in equity markets; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company's activities; the uncertainties involved in interpreting geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 31, 2009 available on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
FOR FURTHER INFORMATION PLEASE CONTACT:
Victory Nickel Inc.
Rene Galipeau or Sean Stokes
CHF Investor Relations
CHF Investor Relations