/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
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VANCOUVER, BC, Jan. 20, 2021 /CNW/ - FPX Nickel Corp. (TSXV:
FPX) ("FPX Nickel" or the "Company") is
pleased to announce that it intends to convert the full amount of
principal and interest owing on the long-term loan provided to the
Company by a Private Shareholder (the "Private Shareholder
Loan"), totalling approximately $3,453,051, into 5,312,386 common shares of the
Company at a price of C$0.65 per
share (the "Debt Conversion"). On completion of the
Debt Conversion, the Private Shareholder Loan will be extinguished
and the Company will be debt-free.
All the securities issued pursuant to the Debt Conversion will
be subject to a four (4) month hold period. Completion of the
Debt Conversion is subject to receipt of all required regulatory
and other approvals, including acceptance by the TSX Venture
Exchange.
The terms of the Private Shareholder Loan are described in the
Company's news release dated March 25,
2019. The Debt Conversion constitutes a "related party
transaction" under Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special
Transactions ("MI 61-101") as the Private Shareholder is a
related party of FPX Nickel given his greater than 10% beneficial
shareholding in the Company. Pursuant to Section 5.5(a) and
5.7(1)(a) of MI 61-101, the Company is exempt from obtaining a
formal valuation and minority approval of the Company's
shareholders in respect of the Debt Conversion due to the fair
market value of the Debt Conversion being below 25% of the
Company's market capitalization.
About FPX Nickel Corp.
FPX Nickel Corp. is focused on the exploration and development
of the Decar Nickel District, located in central British Columbia, and other occurrences of the
same unique style of naturally occurring nickel-iron alloy
mineralization known as awaruite.
On behalf of FPX Nickel Corp.
"Martin Turenne"
Martin Turenne, President, CEO and
Director
Forward-Looking Statements
Certain of the statements made and information contained
herein is considered "forward-looking information" within the
meaning of applicable Canadian securities laws. These statements
address future events and conditions and so involve inherent risks
and uncertainties, as disclosed in the Company's periodic filings
with Canadian securities regulators. Actual results could differ
from those currently projected. The Company does not assume the
obligation to update any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
SOURCE FPX Nickel Corp.