Scott Hand and another former senior Inco executive have joined Royal Nickel Corp. as the Canadian mining company receives a $21.8-million investment from a major Chinese metal distributor.
Ningbo Sunhu Chemical Products Co. Ltd. will acquire a 15.6 per cent equity stake in the Toronto-based nickel company as a result of the investment, Royal announced Monday.
Nignbo Sunhu's investment values the privately held Royal Nickel at about $145-million.
Mr. Hand — who was Inco's chairman and chief executive officer when the company was sold to Brazil's Vale — becomes chairman of Royal Nickel's board of directors, while former Vale Inco executive Tyler Mitchelson will be made president and CEO.
Ningbo Sunhu's CEO will also join Royal Nickel's board of directors once its investment is made formal.
Mr. Hand, who has more than 30 years of senior-level experience in the nickel business, takes over from former chairman Tom Griffis immediately, as the founder of Royal Nickel becomes deputy chair.
Mr. Mitchelson brings with him more than 10 years of experience at Vale Inco and will join Royal Nickel in mid-October.
“The addition of both new capital and new management capability are instrumental in advancing our development plans,” Mr. Hand said in a statement.
Sunhu is a major developer of nickel, other metals and chemicals in China and also has investments in other mining interests.
Royal Nickel is a private nickel development company which owns 100 per cent of the Dumont nickel sulphide deposit in the Val D'Or region of Quebec.
