Fort St. James Nickel Closes Final Tranche of Private Placement for Aggregate Gross Proceeds of $349,485
Suite 1515 - 700 West Pender Street, Vancouver, British Columbia V6C 1G8
FOR IMMEDIATE RELEASE TSX-V: FTJ
FORT ST. JAMES NICKEL CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT FOR AGGREGATE GROSS PROCEEDS OF $349,485
Vancouver, British Columbia – May 21, 2014 – Fort St. James Nickel Corp. (the “Company”) announces that it has closed the second and final tranche of a non-brokered private placement announced on March 19, 2014, having issued an aggregate 6,989,700 units of the Company (the “Units”) at a price per Unit of $0.05 for gross proceeds of $349,485. Each Unit consists of one common share in the capital of the Company and one non-transferable share purchase warrant, each warrant entitling the holder to purchase one additional common share at a price of $0.05 for five years from the date of issuance. Warrants entitling the purchase of 4,820,000 common shares expire on March 28, 2019, and Warrants entitling the purchase of 2,169,700 common shares expire on May 20, 2019.
Shares acquired by the placees, and shares which may be acquired upon the exercise of the share purchase warrants, are subject to a hold period until July 29, 2014 (4,820,000 shares) and until September 21, 2014 (2,169,700 shares), in accordance with applicable securities legislation. The proceeds of the private placement will be used by the Company for general corporate purposes.
An insider participated in the second and final tranche of the private placement, having purchased an aggregate 200,000 Units, which constitutes a related party transaction pursuant to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”). The Company is relying on section 5.5(c) of MI 61-101 (distribution of securities for cash) for exemption from the formal valuation requirement and section 5.7(1)(b) of MI 61-101 (fair market value not more than $2,500,000) for exemption from the minority approval requirement of MI 61-101.
The Company paid cash finder’s fees in the amount of $7,600 to an arm’s length party, representing 10% of the gross proceeds raised under the second tranche of the private placement from subscribers introduced to the Company by the finder.
For further information, please contact:
Head Office: Tel. 604-662-8186 Sandy MacDougall Fax 604-662-8170 President and Chief Executive Officer www.fortstjamesnickel.com
This news release contains certain statements that may be deemed “forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Fort St James Nickel Corp. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Fort St James management on the date the statements are made. Except as required by law, Fort St James Nickel Corp. undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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