Sumitomo Metal Mining Canada is investing about C$14.5 million to gain a 9.9% interest in FPX Nickel (TSXV: FPX). Sumitomo will participate in a private placement, purchasing approximately 30.1 million FPX shares at a price of C$0.48 per share.
“This strategic investment by Sumitomo Metal Mining represents another significant technical validation of FPX’s Baptiste nickel project and underscores our view that Baptiste is a class-leading asset,” said Martin Turenne, FPX’s president and CEO.
“SMM is one of the world’s largest nickel producers, with peer-leading expertise in mining, processing and refining products in the stainless steel and electric vehicle battery supply chains. FPX is pleased to be one of SMM’s preferred partners as they look to expand their nickel production profile and diversify their supply chain to allied partners in North America.”
FPX owns 100% of the Baptiste nickel project in the Decar nickel district of British Columbia, northwest of Fort St. James. This is a large greenfield discovery of naturally occurring awaruite (Ni3Fe). Similar mineralization has been identified in several target areas, but the Baptiste deposit is the most advanced, having reached the prefeasibility phase.
The prefeasibility study completed last year gave the project an after-tax net present value with an 8% discount of C$2.75 billion. The after-tax internal rate of return is 18.6% using a nickel price of $8.75/lb.
FPX intends to use the proceeds of this private placement for exploration and development activities at the project, continuance of ongoing environmental baseline activities, feasibility study readiness activities, and general corporate and administrative purposes.
The private placement is expected to close on Jan. 22, 2024, subject to certain customary conditions.
Source: MINING.COM – Read More
