Nuinsco Nickel Spinout Listed

The spinoff of nickel assets from Nuinsco Resources (NWI-T, NUIRF-O) is complete, with the listing of affiliate Victory Nickel (NI-T).

The new company has Nuinsco’s Minago and Mel development projects in northern Manitoba and the Lac Rocher exploration project in northwestern Quebec, plus $12 million in cash. Nuinsco recently closed a 19.2-million-share financing, for proceeds of $15 million, to cash up Victory, and retains a 25% shareholding.

The proposal received the approval of 99.8% of Nuinsco shares voted at a shareholder meeting Jan. 29. Court approval followed three days later. Under the arrangement, Nuinsco keeps the Cameron Lake gold project in northwestern Ontario, two Saskatchewan uranium projects, Diabase Peninsula and Prairie Lake, and two Turkish copper properties, Berta (a copper-gold porphyry prospect) and Elmalaan (copper-zinc).

Nuinsco recently announced an initial resource estimate for Lac Rocher, discovered in 1999. The estimate, which considered mineralized intersections down to 125 metres vertical depth, puts the size of the measured and indicated resource at 1.2 million tonnes grading 0.93% nickel, based on a cutoff grade of 0.5% nickel. Evaluation work and further exploration in the area are planned for 2007.

Meanwhile, Campbell Resources (CCH-T, CBLRF-O) has closed a financing deal with Nuinsco under which Nuinsco will take just over 31 million shares at 8 per share to complete Campbell’s refinancing. The placement gives Nuinsco 11% of Campbell. Campbell plans to use the $2.5 million from Nuinsco to fund further development at its Joe Mann gold mine, Copper Rand copper mine, and Corner Bay copper development project, all near Chibougamau, Que.

Campbell also cleared off some more liabilities, arranging to pay off $38 million in debentures and redeem $12 million in preferred shares owed by its subsidiary Meston Resources. The company remains in creditor protection until the end of February, when it expects to have its plan of arrangement, approved by its creditors in June 2006, implemented. A recent rights offering netting $5.6 million was fully subscribed.