FPX Nickel Announces $16 Million Strategic Equity Investment from Major Global Stainless Steel Producer Outokumpu
Suite 320 – 1155 West Pender Street
Vancouver, BC Canada V6E 2P4
Tel: 604.681.8600
e-mail: [email protected]
FPX Nickel Announces $16 Million Strategic Equity Investment
from Major Global Stainless Steel Producer Outokumpu
Vancouver, May 30, 2023 – FPX Nickel Corp. (TSX-V: FPX, OTCQB: FPOCF) (“FPX” or the
“Company”) is pleased to announce that it has closed a private placement financing (the “ Private
Placement”) with a new cornerstone strategic investor, the major global stainless steel producer
Outokumpu Oyj (“Outokumpu”).
Under the terms of the Private Placement, FPX has issued 26,800,000 common shares (“Private Placement
Common Shares”) in the capital of the Company to Outokumpu at a price of C$0.60 per common share,
for gross proceeds of C$16,080,000. Upon completion of the Private Placement, Outokumpu now owns
approximately 9.9% of FPX’s issued and outstanding common shares on a non-diluted basis.
“This strategic investment by Outokumpu represents a significant technical validation of FPX’s Baptiste
Nickel Project (“Baptiste” or the “Project”), and underscores Canada’s critical role as a supplier of choice
to allied industrial partners in Europe and the United States,” commented Martin Turenne, FPX’s President
and CEO. “Outokumpu is a large and highly -regarded global operator, with a robust track recor d of
producing the world’s most sustainable stainless steel, and is a significant nickel consumer.
“Our partnership with Outokumpu testifies to Baptiste’s potential to produce a premium nickel product that
can bypass the intermediate smelting stage, thus becoming a highly sought -after feedstock for the
responsible production of low -carbon finished products in multiple consumer and industrial markets,
including stainless steel. FPX is pleased to be Outokumpu’s preferred partner as they look to secure the
sustainable, long-life nickel units which are best aligned with their strategic objectives.”
“The carbon footprint of Outokumpu’s stainless steel is already the smallest in the world, but we want to
further decarbonize our production,” commented Marc-Simon Schaar, Head of Raw Material Sourcing at
Outokumpu. “This would also mean the reduction of the emissions of our supply chain, and to achieve
this, we work together with our suppliers to strengthen the sustainability of the entire supply chain –
including environmental, social and governance aspects. The nickel to be produced from FPX’s Baptiste
deposit in Canada has the potential to have a very low carbon footprint. Therefore, we are excited to be
part of this development project as a shareholder, which , once realized, would provide an excellent low -
emission source of nickel, and in a composition which suits our own production.”
The Company intends to use the net proceeds of the Private Placement primarily for development activities
at the Project, including the completion of a preliminary feasibility study for Baptiste, continuance of
ongoing environmental baseline activities, and feasibility study readiness activities, as well as general
corporate and administrative purposes. The TSX Venture Exchange has provided final acceptance of the
Private Placement and the Common Shares issued pursuant to the Private Placement are subject to a hold
period of four (4) months and one (1) day from the date of issuance in accordance with applicable securities
laws. No finders’ fees or commissions were paid on the Private Placement.
Transaction Details
Concurrent with the closing of the Private Placement:
• FPX granted a right of first offer (“ROFO”) which will provide Outokumpu the right, so long as it
continues to hold the Private Placement Common Shares, to negotiate, at market terms, one or more
offtake agreements with FPX for up to an aggregate of 60,000 tonnes of nickel ( 7,500 tonnes of
nickel per year over a period of eight years) from FPX’s Baptiste Nickel Project.
• FPX and Outokumpu entered into an investor rights agreement (the “Investor Rights Agreement”)
that provides, among other things, Outokumpu with certain rights in the event it maintains
minimum ownership thresholds in the Company, including the right to participate in equity
financings. In addition, pursuant to the Private Placement, Outokumpu has agreed to a two-year
standstill with respect to the acquisition of additional securities in FPX, other than acquisitions
pursuant to Outokumpu’s rights under the Investor Rights Agreement.
Based on the Company’s 2020 preliminary economic assessment (“ PEA”), the Baptiste project has the
potential to produce up to 44, 900 tonnes of nickel per annum over a projected mine life of 35 year s. The
PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be categorized
as mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic
viability. There is no certainty that the conclusions o r results as reported in the PEA will be realized. See
the Company’s September 9, 2020 news release.
Andrew Osterloh, P.Eng., FPX Nickel’s Qualified Person under NI 43-101, has reviewed and approved
the technical content of this news release.
About Outokumpu
Outokumpu is the global leader in stainless steel. The foundation of Outokumpu’s business is its ability to
tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and
designed to last forever. Outokumpu’s customers use it to create civilization’s basic structures and its most
famous landmarks as well as products for households and various industries. Outokumpu employs
approximately 8,500 professionals in close to 30 countries, with headquarters in Helsinki, Finland and
shares listed on Nasdaq Helsinki. www.outokumpu.com
About the Decar Nickel District
The Company’s Decar Nickel District represents a large-scale greenfield discovery of nickel mineralization
in the form of a naturally occurring nic kel-iron alloy called awaruite (Ni 3Fe) hosted in an
ultramafic/ophiolite complex. FPX’s mineral claims cover an area of 245 km 2 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 drillin g, petrographic examination, electron probe analyses and outcrop sampling. Since
2010, approximately US $28 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 territory of Tl’azt’en Nation
and Binche Whut’en First Nation, and within several Tl’azt’enne and Binche Whut’enne keyohs. FPX has
conducted mineral exploration activities to date subject to the conditions of our agreements with the Nations
and keyoh holders.
About FPX Nickel Corp.
FPX Nickel Corp. is focused on the exploration and development of the Decar Nick el District, located in
central British Columbia, and other occurrences of the same unique style of naturally occurring nickel-iron
alloy mineralization known as awaruite. For more information, please view the Company’s website at
www.fpxnickel.com or contact Martin Turenne, President and CEO, at (604) 681 -8600 or
On behalf of FPX Nickel Corp.
"Martin Turenne"
Martin Turenne, President, CEO and Director
Forward-Looking Statements
This press release may contain “forward-looking information” within the meaning of applicable Canadian
securities laws, including those describing FPX's future plans, and the expectations of management that a
stated result or condition will occur. These statements address future events and conditions and so involve
inherent risks and uncertainties, as disclosed in the Company's periodic filings with Canad ian securities
regulators, including its Annual Information Form and MD&A, dated April 19, 2022 and March 30, 2023,
respectively. Actual results could differ materially from those currently projected by management at the
time of writing due to many factors the majority of which are beyond the control of FPX and its
management. In particular, this news release contains forward -looking statements pertaining, directly or
indirectly, to the following: the use of proceeds of the Private Placement; potential business synergies as a
result of FPX’s partnership with Outokumpu; the expected receipt of stock exchange approval, and the
timing thereof; future off -take under the ROFO; and the final terms of the ROFO and Investor Rights
Agreement. Readers are cautioned th at the foregoing list of risk factors should not be construed as
exhaustive. These statements speak only as of the date of this release or as of the date specified in the
documents accompanying this release, as the case may be. The Company assume the obligation to update
any forward-looking statement except as expressly required by applicable securities law
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the
adequacy or accuracy of this release.