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Strategic investor puts $12m into FPX Nickel

30th November 2022

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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TSX-V-listed FPX Nickel has entered into a subscription agreement for a private placement financing with a new corporate strategic investor, raising gross proceeds of $12-million that it plans to use for the continued development of its nickel project in British Columbia.

Under the terms of the placement, FPX will issue 24-million common shares in the capital of the company to the strategic investor at a price of $0.50 each. Upon completion of the private placement, the strategic investor will own about 9.95% of FPX's issued and outstanding common shares on a non-diluted basis.

"This is a transformational investment for FPX, providing important support for the continued development of our large-scale, low-cost, and low-carbon Baptiste nickel project, in central British Columbia," commented FPX president and CEO Martin Turenne.

"Prior to making the investment, the strategic investor conducted multi-functional technical reviews and a project site visit, and we believe the private placement represents a significant endorsement of the project and our approach to project development.”

On closing of the placement, FPX will have a working capital position of about $18.5-million, which will permit the company to fully fund the completion of a preliminary feasibility study in the second half of 2023 and fund subsequent project development activities well into 2024.

FPX said it would use the proceeds for development activities at the project, including the completion of a prefeasibility study and continuance of ongoing environmental baseline activities, as well as for general corporate purposes.

Edited by Creamer Media Reporter

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