FPX Nickel Corp. announced that it has closed the private placement financing with a new cornerstone strategic investor, Sumitomo Metal Mining Canada Ltd., a wholly-owned subsidiary of Sumitomo Metal Mining Co., Ltd., as previously announced in the Company’s January 17, 2024 news release.

Under the terms of the Private Placement, FPX has issued 30,104,488 common shares in the capital of the Company to SMCL at a price of $0.48 per Private Placement Common Share, for gross proceeds of $14,450,154 . On completion of the Private Placement, SMCL now owns 9.9% of FPX’s issued and outstanding common shares on a non-diluted basis.

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 Private Placement Common Shares issued pursuant to the Private Placement will be 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 ‎$578,006 (4% of the gross proceeds of the Private Placement) to RCI Capital Group Inc.

Source: investing News Network