Fort St James Nickel Corp. Announces Consolidation and Private Placement
FOR IMMEDIATE RELEASE TSX-V: FTJ.H
FORT ST JAMES NICKEL CORP. ANNOUNCES CONSOLIDATION AND PRIVATE PLACEMENT
Vancouver, British Columbia – May 13, 2016 – Fort St. James Nickel Corp. (the “Company”) announces that on January 29, 2016, the shareholders of the Company approved a special resolution authorizing (if and when the board of directors of the corporation deems it appropriate to do so, and subject to TSX Venture approval) a share consolidation of the Company’s outstanding common shares at a share consolidation ratio of one post consolidated common share for every ten pre consolidated common shares.
On May 12, 2016 the Company’s board of directors resolved to effect the consolidation, subject to TSX-V approval. The board resolved to proceed with the consolidation after considering the best interests of the corporation and its shareholders.
Concurrently with the proposed consolidation, the Company intends to undertake a non-brokered private placement totaling up to $250,000. These proceeds will be raised by the Company by issuing up to five million units at a price of five cents per unit on a post consolidated basis. Each unit will consist of one post consolidated common share and one share purchase warrant entitling the holder thereof to acquire one additional post consolidated common share of the Company at a post consolidated price of five cents for a period of five years from the closing of the private placement.
The proceeds of the private placement will be used for the payment of near-term liabilities, audit costs and general working capital.
The share consolidation and private placement are subject to the acceptance of the TSX Venture Exchange. Fort St James Nickel Corp. will not be changing its name or its trading symbol in conjunction with the proposed consolidation.
ON BEHALF OF THE BOARD
(signed) “Barry Brown”
Barry Brown President
#604-488-3900
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities issued, or to be issued, under the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.