In This Article:
VANCOUVER, BC, Oct. 29, 2024 /CNW/ - FPX Nickel Corp. (TSXV: FPX) (OTCQB: FPOCF) ("FPX Nickel" or the "Company") is pleased to announce an expansion that almost doubles the mineral claims package at the Baptiste Nickel Project ("Baptiste" or the "Project"), located within the Company's wholly-owned Decar Nickel District ("Decar"). The total area of the Decar claims package is now approximately 451 km2, providing several benefits to the development of Baptiste, including geological potential, project development flexibility, and simplification of the regional engagement landscape.
Decar Nickel District Expansion
The Company has expanded the Decar claims from 245 km2 to approximately 451 km2, through a combination of staking and acquisition of claims from a previous operator.
FPX has staked approximately 188 km2 of new ground adjacent to Decar, on the northern, western, and southeastern boundaries. In addition, the Company has acquired from a previous operator a 100% interest in 18 km2 of claims adjacent to the southern boundary of Decar, for cash consideration of $185,000 (the "Transaction"). These new claims collectively provide FPX with additional project development flexibility and the opportunity to manage the areas surrounding the Baptiste Nickel Project in an environmentally responsible manner.
Klow Project Expansion
As part of the Transaction, the Company also acquired, for cash consideration of $50,000, approximately 87 km2 of claims adjacent to the southern boundary of FPX's Klow project ("Klow"), which is located approximately 50 km north of Baptiste. These newly acquired claims have strong geological potential for awaruite mineralization similar in style to the Baptiste deposit. Rock sampling by a previous operator returned values of up to 0.087% Davis Tube Recoverable ("DTR") nickel, and 69 of the 197 samples analyzed returned greater than 0.03% DTR Ni.
As disclosed in the Company's April 3, 2023 news release, FPX Nickel and Japan Organization for Metals and Energy Security ("JOGMEC") have previously entered into an earn-in agreement (the "Klow Earn-In Agreement") which provides JOGMEC the option to earn a beneficial interest in the Klow Project.
The key terms of the Klow Earn-in Agreement are as follows:
-
FPX grants to JOGMEC the option to earn a 60% beneficial interest in Klow by funding $1,000,000 in exploration expenditures by no later than March 31, 2026
-
Once JOGMEC has earned its 60% beneficial interest in Klow, the parties will thereafter fund exploration expenditures pro rata to their ownership interest
-
If either party's beneficial interest in Klow is diluted below 10%, that party's beneficial interest will be converted into a 1.5% NSR royalty over Klow, with the other party retaining a right to buy-back 1.0% of the NSR royalty for $3,500,000