Fort St. James Nickel Corp. enters into an Option Agreement with Great Atlantic Resources Corp.
Date: August 21, 2017 News Release
Fort St. James Nickel Corp. enters into an Option
Agreement with Great Atlantic Resources Corp.
Vancouver, British Columbia: Fort St. James Nickel Corp. (TSX-V: FTJ.H) (“FTJ” or the “Company”)
is pleased to announce that it has signed an option agreement (the “Agreement”) with Great Atlantic
Resources Corp. (“GR”) a company listed on the TSX Venture Exchange ( “TSXV”), under which FTJ
may acquire 100% of GR ’s Porcupine property (the “Property”) located in New Brunswick (the
“Transaction”).
Under the Agreement, FTJ may earn-in a 100% interest in the Property by making certain staged cash
payments and share payments of common shares in the capital of FTJ to GR over a four year period as
follows: (i) $15,000 in cash and 500,000 common shares within five (5) days of the TSXV approval of the
Transaction (the “Approval Date”); (ii) $20,000 in cash and $75,000 in common shares on or before the
first anniversary of the Approval Date; (iii) $20,000 in cash and $75,000 in common shares on or before
the second anniversary of the Approval Date; (iv) $20,000 in cash an d $75,000 in common shares on or
before the third anniversary of the Approval Date; and (v) $75,000 in cash and $200,000 in common
shares on or before the fourth a nniversary of the Approval Date. FTJ will also be required to spend
$1,000,000 in exploration expenditures on the Property over a four (4) year period with a minimum of
$150,000 each year.
GR will retain a 2.0% new smelter return royalty (the “NSR Royalty”) which FTJ may buy down one -
half (50%) of the NSR Royalty by paying $1,000,000, leaving GR with 1.0%.
The Transaction is subject to, among other things, the completion of a National Instrument 43 -101
technical report on the Property, and obtaining all necessary regulatory approvals, including the TSX V. If
complete, the Transaction will constitut e a “Fundamental Acquisition” as such term is defined in TSXV
Policy 5.3. The common shares of FTJ will remain halted until the TSXV has reviewed the Transaction in
accordance with TSXV Policy 5.3.
ON BEHALF OF THE BOARD
Barry Brown
President
Fort St James Nickel Corp.: 604-488-3900
This news release may contain forward-looking statements including but not limited to the proposed Transaction, completion of a
National Instrument 43-101 technical report, comments regarding the timing and content of upcoming work programs, geological
interpretations, receipt of property titles, and potential mineral recovery processes . Forward-looking statements address future
events and conditions and therefore involve inherent risks and uncertainties. Forward -looking statements consist of statements
that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the f uture.
Such information can generally be identified by the use of forwarding -looking wording such a s “may”, “expect”, “estimate”,
“will”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. Actual results may d iffer
materially from those currently anticipated in such statements and the Company undertakes no o bligation to update such
statements, except as required by law. The reader is cautioned not to place undue reliance on any forward -looking information.
There can be no assurance that either of the proposed transactions with GR will be completed or, if completed, will be successful.
Completion of the Transaction is subject to a number of conditions, including but not limited to, TSX Venture Exchange
acceptance, if applicable. There can be no assurance that the Transaction will be completed as proposed or at all.
Forward-looking statements are based on the then -current expectations, beliefs, assumptions, estimates and forecasts about the
business and the industry and markets in which the Company operates, including that: the current price of and demand for
minerals being targeted by the Company will be sustained or will improve; the Company ’s current exploration programs and
objectives can be achieved; results of exploration activities; the Company will be able to obtain required exploration licences and
other permits; general business and economic conditions will not change in a material adverse manner; financing will be available
if and when needed on reasonable terms; the Company will not experience any material accident; and the Company will be able
to identify and acquire additional mineral interests on reasonable terms or at all. Forward-looking statements are not guarantees of
future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all
forward-looking statements involve risks and uncertainties, including: that resource exploration and development is a speculative
business; that the Company may lose or abandon its property interests or may fail to receive necessary licences and permits;
equipment breakdowns; labour disputes; the increase in cost estimates and the potential for unexpected costs and expenses; the
results of exploration activities; that environmental laws and regulations may become more onerous; that the Company may not
be able to raise additional funds when necessary; potential defects in title to the Company ’s properties; fluctuating prices of
commodities; operating hazards and risks; competition; potential inability to find suitable acquisition opportunities and/or
complete the same; and other risks and uncertainties listed in the Company ’s public filings. These risks, as well as others, could
cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward -looking
statements and information, which are qualified in their entirety by this cautionary statement. There can be no assurance that
forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove
to be acc urate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary
forward-looking statements, except as required by applicable securities law.
Neither TSX Venture Exchange nor its Regulation Services Provid er (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.