Major nickel producer Sumitomo Metal and Mining (SMM) has made a C$14.4-million strategic equity investment in FPX Nickel, underscoring the Vancouver-based junior’s view that its Baptiste project is a “class-leading asset”.
The Baptiste project, in central British Columbia, has the potential to produce 59 100 t/y over a 29-year mine life.
“SMM is one of the world’s largest nickel producers, with peer-leading expertise in mining, processing and refining products in the stainless steel and electric vehicle battery supply chains.
“FPX is pleased to be one of SMM’s preferred partners as they look to expand their nickel production profile and diversify their supply chain to allied partners in North America,” comments FPX president and CEO Martin Turenne.
Under a private placement, FPX will issue 30-million shares to SMM at C$0.38 a share. Upon completion, SMM will own about 9.9% of FPX.
FPX's stock closed 10% lower at C$0.29 a share.