FPX Nickel closes $14.4M equity investment from Sumitomo Metal Mining
by CM Staff
The Company intends to use the net proceeds of the Private Placement primarily for exploration and development activities at its Baptiste Nickel Project.
January 22, 2024 MOU signing ceremony in Vancouver, Canada, featuring (left to right), Fazil Mihlar, Deputy Minister, Ministry of Jobs, Economic Development & Innovation, Government of British Columbia, Martin Turenne, President and CEO, FPX Nickel, Eiichi Fukuda, Executive Officer, General Manager of Mineral Resources Division, Sumitomo Metal Mining, and Kohei Maruyama, Consul General of Japan in Vancouver (CNW Group/FPX Nickel Corp.)
VANCOUVER — FPX Nickel Corp. announces that it has closed the private placement financing with a new cornerstone strategic investor, Sumitomo Metal Mining Canada Ltd., a wholly-owned subsidiary of Sumitomo Metal Mining Co., Ltd.
Under the terms of the Private Placement, FPX has issued 30,104,488 common shares in the capital of the Company to SMCL at a price of $0.48 per Private Placement Common Share, for gross proceeds of $14,450,154. On completion of the Private Placement, SMCL now owns 9.9% of FPX’s issued and outstanding common shares on a non-diluted basis.
The Company intends to use the net proceeds of the Private Placement primarily for exploration and development activities at its Baptiste Nickel Project, continuance of ongoing environmental baseline activities, feasibility study readiness activities, and general corporate and administrative purposes. The Private Placement Common Shares issued pursuant to the Private Placement will be subject to a hold period of four (4) months and one (1) day from the date of issuance in accordance with applicable securities laws.
In connection with the Private Placement, the Company has agreed to pay a cash advisory fee in the amount of $578,006 (4% of the gross proceeds of the Private Placement) to RCI Capital Group Inc.
The Company’s Decar Nickel District represents a large-scale greenfield discovery of nickel mineralization in the form of a naturally occurring nickel-iron mineral called awaruite (Ni3Fe) hosted in an ultramafic/ophiolite complex. FPX’s mineral claims cover an area of 245 km2 west of the Middle River and north of Trembleur Lake, in central British Columbia. Awaruite mineralization has been identified in several target areas within the ophiolite complex including the Baptiste Deposit and the Van Target, as confirmed by drilling, petrographic examination, electron probe analyses and outcrop sampling. Since 2010, approximately US $30 million has been spent on the exploration and development of Decar.
Of the four targets in the Decar Nickel District, the Baptiste Deposit has been the focus of increasing resource definition (a total of 99 holes and 33,700 m of drilling completed), as well as environmental and engineering studies to evaluate its potential as a bulk-tonnage open pit mining project. The Baptiste Deposit is located within the Baptiste Creek watershed, on the traditional and unceded territories of Tl’azt’en Nation and Binche Whut’en, and within several Tl’azt’enne and Binche Whut’enne keyohs. FPX has conducted mineral exploration activities to date subject to the conditions of agreements with First Nations and keyoh holders.
