Canadian exploration company Power Nickel has set the price for its previously announced “best efforts” private placement for 14,135,000 Quebec flow-through shares at C$2.83 ($1.97), aiming to raise approximately C$40m ($27.99m).
The gross proceeds will be used for Canadian exploration expenses, as defined by the Tax Act and the Quebec Taxation Act (QTA), with the intention to renounce these in favour of the purchasers by 31 December 2025.
The capital raise will enable the company to expand exploration activities at the Nisk nickel-copper sulphide project in Quebec, which includes the Nisk and Lion zones and untested electromagnetic targets.
BMO Capital Markets and Hannam & Partners are leading the offering as joint bookrunners, supported by a syndicate of agents.
Power Nickel CEO Terry Lynch said: “The company is thrilled to announce and appreciates the continued support of Robert Friedland and Rob McEwen among other current shareholders in this placement as it looks forward to the exciting winter 2025 drill programme and the summer 2025 programme.”
For Quebec residents purchasing these shares, an additional 20% tax deduction is available for certain exploration expenses.
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If Power Nickel cannot renounce the expenses as planned, the company has pledged to indemnify purchasers for any additional taxes incurred.
The offering is scheduled to close around 27 February 2025, conditional upon receiving all necessary regulatory approvals, including that of the TSX Venture Exchange.
The securities offered are not registered under the US Securities Act of 1933 and are subject to specific exemptions from registration requirements.
Earlier this month, Power Nickel’s Golden Ivan Property and certain Chilean assets and liabilities were spun out to its shareholders through its wholly owned subsidiary, Chilean Metals.
