The demand for nickel among investors continues to rise, with FPX Nickel (TSXV: FPX) this morning indicating it has obtained a new corporate strategic investor.
The firm indicated that it managed to raise gross proceeds of $12.0 million from the new investor. Proceeds were raised via the issuance of 24.0 million common shares at a price of $0.50 per each. Post financing, the investor is said to hold a 9.95% stake in the company on a non-diluted basis.
Proceeds from the financing are to be used for the completion of a preliminary feasibility study and the continuance of environmental baseline activities at the firms Decar Nickel District. Funds will also be used for general corporate purposes.
FPX Nickel currently is focused on the Decar Nickel District, where it has claims covering 245 square kilometres northwest of Fort St James in British Columbia. The project currently has indicated resources of 3.8 million tonnes of nickel at a grade of 0.211%, and inferred resources of 720,000 tonnes of nickel at a grade of 0.212% at the Baptiste deposit.
“”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 Private Placement, the Company will have a working capital position of approximately $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,” said CEO Martin Turenne on the financing.
Details on the strategic investor were not released.
FPX Nickel last traded at $0.465 on the TSX Venture.
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