FPX Nickel Announces Full Exercise of Participation Rights by the Company’s Three Strategic Investors and Completion of Resultant Private Placement
Suite 320 – 1155 West Pender Street
Vancouver, BC Canada V6E 2P4
Tel: 604.681.8600
e-mail: [email protected]
FPX Nickel Announces Full Exercise of Participation Rights by the
Company’s Three Strategic Investors and Completion of Resultant
Private Placement
Vancouver, February 1, 2024 – FPX Nickel Corp. (TSX-V: FPX, OTCQB: FPOCF) (“FPX” or the
“Company”) is pleased to announce that in connection with the $1 4.4 million strategic investment by
Sumitomo Metal Mining Canada Ltd. (“SMCL”) which closed on January 22, 2024, the Company’s three
strategic investors have fully exercised their participation rights to re -establish their respective initial
ownership interest in FPX’s issued and outstanding common shares (“Common Shares”).
In connection with the exercise of the participation rights, the Company has completed an additional private
placement (“Private Placement”) through the issuance of a total of 8,981,97 1 Common Shares of the
Company to the three strategic investors (the Corporate Strategic Investor, Outokumpu Oyj, and SMCL) at
a price of $0.48 per Common Share, for gross proceeds of $4,311,346.
On completion of the Private Placement, FPX has a cash position of approximately $45 million, which the
Company estimates to be sufficient to fund its planned activities for 2024 and 2025. Details of the
participation by each of the Company’s three strategic investors are provided below.
Corporate Strategic Investor
On December 1, 2022, FPX closed a private placement of Common Shares with a Corporate Strategic
Investor which provided the Corporate Strategic Investor the right to participate in equity financings to
maintain its 9.95% interest in the Company. In connection with the exercise of the participation right, the
Company has issued 3,899,053 Common Shares to the Corporate Strategic Investor at a price of $0.48 per
Common Share, for gross proceeds of $1,871,545.
Outokumpu Oyj
On May 30, 2023 , FPX closed a private placement of Common Shares with the major stainless steel
company Outokumpu Oyj (“Outokumpu”) which provided Outokumpu the right to participate in equity
financings to maintain its 9.9% interest in the Company. In connection with the exercise of the participation
right, the Company has issued 4,193,703 Common Shares to Outokumpu at a price of $0.48 per Common
Share, for gross proceeds of $2,012,977.
In accordance with the terms of an amended investor rights agreement (“IRA”) between Outokumpu and
the Company, in the event Outokumpu reaches and maintains a minimum ownership of 15% or more of the
issued and outstanding Common Shares of FPX on a non-diluted basis, Outokumpu will have the right to
nominate one director to FPX’s board of directors. Further, the amended IRA includes a covenant from
Outokumpu to not vote against management’s recommendations on ordinary matters to be approved by the
shareholders of the Company, in each case subject to certain customary conditions and exceptions.
Sumitomo Metal Mining Canada Ltd.
On January 22, 2024 , FPX closed a private placement of Common Shares with SMCL which provided
SMCL the right to participate in equity financings to maintain its 9.9% interest in the Company. In
connection with the exercise of the participation right, the Company has issued 889,215 Common Shares
to SMCL at a price of $0.48 per Common Share, for gross proceeds of $426,823.
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
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.
In connection with the Private Placement, the Company has agreed to pay a cash advisory fee in the amount
of $17,073 (4% of the amount invested by SMCL) to RCI Capital Group Inc.
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 nickel -iron mineral 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 drilling, petrographic examination, electron probe anal yses 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.
About FPX Nickel Corp.
FPX Nickel Corp. is focused on the exploration and development of the Decar Nickel District, located in
central British Columbia, and other occurrences of the same unique style of naturally occurring nickel-iron
mineralization known as awaruite. For more information, please view the Company’s website at
https://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 news 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 Canadian securities
regulators. 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 the
strategic investors' additional investments in FPX; the nomination and appointment to FPX's board of
directors of a nominee of Outokumpu; FPX's current cash position being sufficient to fund its planned
activities for 2024 and 2025; and the advancement of exploration and development activities at the Decar
Nickel District. Readers are cautioned that 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 assumes 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.