Premium Nickel Resources (TSX-V:PNRL) has expanded its previously announced private placement to C$27.5 million ($30.25 million) following “very strong interest” in the offer.
With support largely coming from existing shareholders, the Toronto-based company has received commitments for the full amount of C$27.5 million — far exceeding the C$15 million Premium Nickel had previously been seeking.
Under the non-brokered private placement, shares are being offered at C$0.78 each.
As part of the placement, Premium Nickel entered into a binding term sheet with EdgePoint Investment Group and another investor, which will purchase more than 7.69 million shares each, raising a total of C$12 million.
EdgePoint is expected to own 14.1% of the issued shares in Premium Nickel upon completion of the placement.
SCP Resource Finance will act as financial advisor to the company.
The initial offering for C$15 million is expected to close on 14 June 2024, with the final tranche of the remaining amount due to close on 21 June, subject to the receipt of all necessary approvals.
Premium Nickel holds two battery mineral mines in Botswana — the Selkirk and Selebi mines — as well as other projects in Greenland and Canada.
The company aims to redevelop and modernise the remaining resources to produce two separate nickel and copper commercial concentrates.
Write to Aaliyah Rogan at Mining.com.au
Images: Premium Nickel
