TORONTO - Power Nickel Inc. (TSXV: PNPN) (OTCBB: PNPNF) (Frankfurt: IVV) has completed a private placement, raising CAD $2.18 million through the sale of flow-through units to fund its exploration activities at the Nisk property in Quebec, the company announced. The private placement, which closed on December 29, 2023, consisted of 4,360,000 units at a price of $0.50 each.
The proceeds from the sale are earmarked for the exploration of the Nisk property, where the company plans to deploy a second drilling rig to investigate new targets identified by Ambient Noise Tomography technology. The exploration is part of a broader 2024 plan that includes completing a feasibility study with CVMR Inc., spinning out copper and gold assets, and defending against predatory short sellers.
Each unit sold in the private placement includes one common share and a half warrant, with each full warrant convertible into a non-flow-through common share at $0.50 for three years post-issuance. The warrants come with an acceleration clause that could shorten their exercise period under certain conditions.
The company has received conditional approval from the TSX Venture Exchange for the private placement and plans to use the federal 30% Critical Mineral Exploration Tax Credit towards eligible Canadian exploration expenses.
In 2023, Power Nickel increased its NI 43-101 Mineral Resource Estimate significantly, and for 2024, it aims to continue this trend. Other plans include completing a feasibility study with CVMR Inc., which has suggested a potential 30% improvement in mineral recovery and a notable increase in revenue for finished products over concentrate.
Additionally, Power Nickel intends to spin out its copper and gold assets into a new company, Pan American (TSX:PAAS) Gold Equities, using the same Ambient Noise Tomography technology in Chile.
The company is also in the process of selling a royalty at the Teck Resources (NYSE:TECK) Limited-owned Copaquire project and negotiating a 10% stake and offtake agreement for Nisk production.
Power Nickel's CEO Terry Lynch expressed optimism about the company's ambitious 2024 program, emphasizing transparent communication with stakeholders and the potential of Nisk to become Canada's first Carbon Neutral nickel mine.
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