EV Nickel Inc. [EVNI-TSX] said Friday it has completed an over-subscribed private placement financing that raised $2.2 million for exploration at the Shaw Dome nickel project, southeast of Timmins, Ont.
The offering consisted of 7.8 million flow-through units priced at 18 cents each and 3.3 million units sold to charitable purchaser for 24 cents per unit. Each flow-through and charity flow-through unit consists of one common share and one half of one common share purchase warrant.
Each warrant entitles the holder to purchase one common share for 25 cents for 24 months.
On Friday, EV shares were trading at 18 cents in a 52-week range of 60 cents and 12.5 cents.
EV is a nickel exploration company that aims to accelerate the transition to clean energy by focusing on the Shaw Dome area, where EV’s land package now spreads across more than 30,000 hectares and includes more than 100 kilometres of favourable strike length.
In addition to historic production, the Shaw Dome area is home to the Langmuir W4 deposit, which was discovered by drilling one of a cluster of anomalies in early 2007.
Shaw Dome is accessible by road and is located 25 kilometres southeast of Timmins.
According to a NI-43-101-compliant estimate, Langmuir W4, is thought to host 677,000 tonnes, grading high grade nickel (1.00%) or 15 million pounds. Langmuir is situated 7.00 kilometres by road from the Redstone Mill, which has a capacity of 2,000 tonnes per day.
The financing announcement comes after EV recently released an update on exploration drilling related to the Shaw Dome nickel project, which hosts Kambalda-style sulfide mineralization, occurring in ultramafic and mafic flows and sills, favourable for hosting nickel, copper and platinum group metals.
Airborne geophysics have been flown over the entire property and more than 20 separate clusters of airborne EM anomalies were identified.
The company said its Phase 2 drilling program is now complete and tested the down plunge potential of the high-grade Langmuir W4 Zone. It said this work is targeting the “W4 Extension” of the currently defined mineralized envelope with an objective of identifying additional high-grade nickel mineralization targeting the area between 200 and 500 metres from surface.
Results will be published as they are received this summer, the company said.
Meanwhile, the company said it has immediately shifted to Phase 3.0, starting with the Large-Scale CarLang Target in the northeast of the company’s land package. It said the drills have been mobilized and initiated drilling. It said the exploration team has begun to see core from this target.
EV said it plans to grow and advance a Clean Nickel business, targeting the growing demand for Class 1 nickel from the electric vehicle battery sector