FPX Nickel Endorsed by Major Global Stainless Steel Producer Outokumpu via $16mm Equity Investment

from Mining Stock Education

FPX Nickel (TSX-V: FPX, OTCQB: FPOCF) just announced and closed a $16 million strategic equity investment from major global stainless steel producer Outokumpu. FPX has issued 26,800,000 common shares in the capital of the company to Outokumpu at a price of C$0.60 per common share, for gross proceeds of C$16,080,000. Upon completion of the private placement, Outokumpu now owns approximately 9.9% of FPX’s issued and outstanding common shares on a non-diluted basis.

CEO Martin Turenne stated: ““This strategic investment by Outokumpu represents a significant technical validation of FPX’s Baptiste Nickel Project, and underscores Canada’s critical role as a supplier of choice to allied industrial partners in Europe and the United States, Outokumpu is a large and highly-regarded global operator, with a robust track record of producing the world’s most sustainable stainless steel, and is one of the largest single consumers of nickel in the world. Our partnership with Outokumpu testifies to Baptiste’s potential to produce a premium nickel product that can bypass the intermediate smelting stage, thus becoming a highly sought-after feedstock for the responsible production of low-carbon finished products in multiple consumer and industrial markets, including stainless steel. FPX is pleased to be Outokumpu’s preferred partner as they look to secure the sustainable, long-life nickel units which are best aligned with their strategic objectives.”

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