Fathom moves to fund Saskatchewan nickel-cobalt exploration

Fathom Nickel Inc. [FNI-CSE, FNICF-OTCQB, 6Q5-FSE] has announced a $2 million private placement, including strategic participation by Crescat Captal LLC. Proceeds are earmarked for nickel and cobalt exploration at the company’s Gochager project in Saskatchewan.

Fathom said the non-brokered private placement will consist of any combination of charity flow-through units priced at 19 cents per unit, flow through units priced at 15.5 cents each and hard dollar units priced at 13.5 cents each.

Fathom said Crescat Capital has pledged to make a strategic investment of up to 25% of the offering, leaving Crescat with approximately 19% of Fahom’s common shares.

On April 27, Fathom shares closed at 11.5 cents and currently trade in a 52-week range of 26.3 cents and $0.024.

Each charity flow-through unit consists of one common share and one transferable common share purchase warrant exercisable into one common share for 24 months at an exercise price of 20 cents.

Each flow-through unit will consist of one flow-through common share and one half of a transferable share purchase warrant. One whole warrant is exercisable into a warrant share for 24 months from issuance at 23 cents. The hard dollar units will consist of one common share and one warrant.

Fathom has two exploration projects in the prolific Trans Hudson Corridor in Saskatchewan. They include the Albert Lake project, a 90,000-hectare property which contains the historic past producing Rottenstone deposit, a producer of high-grade nickel-copper and platinum group metals from 1965 and 1969.

The portfolio also includes the Gochager Lake Project, which covers 19,000 hectares and contains a non-NI 43-101l-compliant open pit resource of 4.3 million tonnes at 0.295% nickel and 0.081% copper defined from 1967 to 1970. The project also contains an analogous drill-tested nickel occurrence at Mal Lake as well as the Borys Lake zinc-copper-lead-silver occurrence.

Ian Fraser, CEO and vice-president, exploration at Fathon Nickel said he was pleased with results of a two-hole program completed in February at Gochager Lake.  “We achieved our three-pronged goal of 1) intersecting high-grade nickel-bearing semi-massive to massive sulphide mineralization, 2) successfully testing for associated cobalt mineralization, and 3) employing the BHEM (borehole electromagnetic survey) tool for the very first time at this project – a tool which has proved very successful at Albert Lake.’’

Drilling highlights included continuous nickel mineralization of 1.49% over a length of 58.2 metres, including intercepts as high as 2.95% over 4.2 metres in hole GL23003. Drilling also returned impressive cobalt grades encountered throughout all zones of mineralization, including a 4.2-metre section, grading 0.22%.

BHEM results suggest a continuation of mineralization to depth and possibly a greater strike length than previously recognized.

The company said it has begun planning for a summer program at Gochager Lake. It will include further BHEM surveys within the area of drill holes GL23003 and GL23004 to properly understand the geometry of the mineralization and off-hole responses detected in the 2023 drilling and historic drill holes.