- Mining company FPX Nickel (FPX) has closed its non-brokered private placement after raising C$4.93 million in gross proceeds
- Through the offering, the company issued just under 9 million of its shares at a price of $0.55 per share
- In related news, FPX has settled the principal amount and interest owed on a long-term loan provided by the company’s Chairman
- The company settled the $4,262,521 debt by issuing 7,750,037 common shares at a price of $0.55 per share
- FPX Nickel (FPX) is up 4.92 per cent and is currently trading for $0.64 per share
Mining company FPX Nickel (FPX) has closed its non-brokered private placement after raising C$4.93 million in gross proceeds.
The company first announced plans to conduct a private placement on October 7. At the time, FPX Nickel intended to only offer 5,818,181 common shares for proceeds of up to $3.2 million.
However, only a day later, the company increased the placement to allow for proceeds of up to $4 million. This sudden increase was reportedly due to a positive investor response.
This strong demand from company investors saw FPX Nickel increase its private placement one more time, on October 15, 2020.
In the end, the company issued 8,963,636 of its shares at a price of $0.55 per share through the placement. One director of FPX Nickel subscribed for 200,000 of those shares, producing gross proceeds of $110,000 from that one subscription.
As part of the offering, FPX Nickel paid finder’s fees of $135,210 on a portion of the private placement’s proceeds.
The capital raised through the placement will go towards advancing the company’s flagship Decar Nickel District in central British Columbia. This will include drilling at the Baptiste Deposit, a maiden drilling program at the Van Target, and metallurgical and market testing of nickel products for the stainless steel and electric vehicle battery markets.
Some funds may also be used for the company’s general working capital purposes.
In related news, FPX has settled the principal amount and interest owed on a long-term loan, known as “the Bradshaw Loan”. The loan was provided to FPX by the company’s Chairman, Peter Bradshaw.
The company settled the $4,262,521 debt by issuing 7,750,037 of its common shares at a price of $0.55 per share. On completing the debt conversion, the Bradshaw Loan has been extinguished.
FPX Nickel (FPX) is up 4.92 per cent, trading for $0.64 per share as of 10:49am EDT.
