Power Nickel (TSX-V:PNPN) plans to conduct a flow-through financing for up to C$20 million ($21.9 million) to fund exploration activities at its Nisk property in Québec, Canada.
Under the offering, the company will issue 16 million flow-through (FT) units at C$1.25 each. Each unit comprises one flow-through common share and one-half of a share purchase warrant, exercisable at C$1.25 for a three-year period.
Wealth Creation Preservation & Donation and IA Capital Markets will be working with Power Nickel on the financing, while Rob McEwen — Chairman of McEwen Mining (TSX:MUX) — “has joined with several other leading mining investors in providing the investor buyback” of the financing.
“In life you are often judged by the company you keep, and, in this respect, we think every Power Nickel shareholder wins through this association with some of the most legendary and successful mining investors on the planet,” Power Nickel CEO Terry Lynch says.
“Clearly, they are as excited about the potential for Nisk as we are, and this raise will allow us to really ramp up our exploration efforts over the next 12 to 18 months.”
The offering is expected to close before the end of June 2024.
Meanwhile, Power Nickel has closed an earlier FT financing for C$200,000 via the issue of 250,000 FT units at $0.80 each.
The Nisk property comprises a 20km strike length and is considered prospective for nickel, copper, and platinum group elements mineralisation.
Power Nickel is a Canadian junior explorer focused on developing Nisk into Canada’s first neutral nickel mine. The company also has assets in British Colombia and Chile.
Write to Aaliyah Rogan at Mining.com.au
Images: Power Nickel
