Power Nickel has announced plans to conduct a flow-through offering to raise gross proceeds of up to $20m (C$27.52m).
This offering will involve the issuance of up to 16 million flow-through units (FT Units) at $1.25 each.
The company noted that each FT Unit will consist of one flow-through common share and one-half share purchase warrant.
Each whole warrant will be exercisable to purchase one common share at $1.25 for three years from the date of issuance.
Mining investor Rob McEwen, alongside other leading mining investors, is backing the financing.
The company has engaged Wealth Creation Preservation & Donation and IA Capital Markets to manage the financing process.
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Back-end purchasers will have the opportunity to acquire the underlying common shares and warrants from the front-end buyers of the FT Units at $0.66 per common share and warrant (combined).
The funds raised are intended for exploration activities at Power Nickel’s Nisk property in Quebec.
The company aims to incur eligible Canadian exploration expenses that will qualify for the federal 30% critical mineral exploration tax credit.
Closing of the financing, which awaits the approval of the TSX Venture Exchange, is anticipated before the end of June.
Power Nickel also completed a separate flow-through financing, raising $200,000 by issuing 250,000 FT Units.
Each unit in this transaction includes one flow-through common share and one share purchase warrant, with each warrant exercisable at $0.80 per common share for a period of three years from the date of issuance.
Power Nickel CEO Terry Lynch said: “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.
“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 12–18 months.”
