Canadian explorer Power Metallic Mines (TSX-V:PNPN) plans to accelerate exploration at its Nisk Project in Québec after boosting its cash reserves by C$50 million ($55.5 million).
The company, which has a market capitalisation of C$325.7 million, has closed its previously announced private placement offering.
Under the offer, Power Metallic issued 14.1 million flow-through shares at C$2.83 per share to raise just over C$40 million and 6.9 million non-flow-through shares at C$1.45 each to raise just under C$10 million.
BMO Capital Markets and Hannam & Partners acted as co-lead agents and joint bookrunners for the placement.
Power Metallic CEO Terry Lynch says raising the cash will enable the company to accelerate the pace of exploration dramatically.
“We just added a third drill rig testing the western flank of the Lion Zone while Rig One focuses on the Lion Zone and the second rig continues to explore the Tiger Zone 700m to the east of the Lion Zone,” he says.
Power Metallic recently changed its name from Power Nickel to better reflect the polymetallic nature of its Nisk Project, which hosts nickel, copper, platinum group metals, gold and silver.
The company was also ranked the top mining company and fourth overall in the TSX Venture 50, which ranks the top performing companies on the Canadian exchange over the last year.
Power Metallic witnessed a 365% appreciation in its share price in 2024.
“Last year we proved the Lion Zone was something special, 2024 was a great run but we are looking forward to doing better in 2025,” Lynch says.
“We are fully funded and doubling our exploration programs and if you asked our tremendous scientific team I think they would all feel this discovery is just getting going.”
Power Metallic is aiming to expand exploration target areas within the Nisk Project via a winter drilling program currently underway.
The company expects there to be additional targets along the trend between the Nisk Project and the Lion Zone discovery, which will provide further drill targets for the 2025 program.
Power Metallic Mines will be exhibiting at this year’s Prospectors & Developers Association of Canada (PDAC) event being held from 2-5 March in Toronto, Canada.
PDAC brings together up to 30,000 attendees from over 130 countries for its educational programming, networking events, as well as business and investment opportunities.
Mining.com.au is an official media partner for the upcoming event. To register for PDAC 2025 click here.
Write to Angela East at Mining.com.au
Images: Power Metallic Mines
