Metallica Minerals Limited announced that it has entered into a royalty agreement with a privately owned company to allow the mining and extraction of nickel laterite ore from the company's Dingo Dam Mining Lease in Queensland. The lease is part of Metallica's non-core Lucky Break Nickel Project, directly west of Townsville and to the southeast of its SCONI scandium-nickel and cobalt project. The royalty payable to Metallica under the agreement is as follows: First Payment: $250,000 on 9th January 2015 (which has been received).

Second Payment: $200,000 six months from the Signing Date or when a total of 30,000 tonnes of nickel laterite ore is extracted and removed from the royalty area, whichever is later. Third Payment: $200,000 ten months from the start date or when a cumulative total of 60,000 tonnes of nickel laterite ore is extracted and removed from the royalty area, whichever is later. Additional Payment: $4 per tonne for any tonnages above 130,000 tonnes of nickel ore that is extracted and removed from the royalty area.

The agreement will end: If the Payer does not extract 60,000 tonnes of nickel ore from the mine site within 12 months from the signing date; If applicable, any date on which this deed is terminated in accordance with its terms; or two years from the signing date. The private company is responsible for conducting all mining operations and trucking activities and associated rehabilitation at Dingo Dam. The private company is also responsible for keeping the existing tenement valid and in force and effect including, lodging in good time, all required reports and paying all fees, rates, royalties, taxes and rental payments due.