Friedland, McEwen back upsized Power Nickel financing
Power Nickel Inc. [PNPN-TSXV, PNPNF-OTCQB, IVV-Frankfurt] said it is upsizing a previously announced private placement financing by up to $10.0 million, a move that is expected to raise the total proceeds to $50 million.
The company had previously said it planned to raise $40 million from a private placement of 14.1 million worth of Quebec flow-through shares priced at $2.83 per share.
The upsized offering will now also consist of up to $10 million in non-flow-through common shares, priced at $1.45 per share.
On Wednesday, Power Nickel shares rose 1.2% or $0.02 to $1.70. The shares trade in a 52-week range of $1.97 and 19 cents.
“The company is thrilled to announce and appreciates the continued support of [mining financiers] Robert Friedland and Rob McEwen among other current shareholders in this placement as it looks forward to the exciting winter 2025 drilling program and the summer 2025 drill program,’’ said Power Nickel CEO Terry Lynch.
The company said the offering is expected to close by February 27, 2025, subject to the necessary regulatory approvals.
Power Nickel is a Canadian exploration company with a focus on developing the high-grade nickel-copper PGM (platinum group metals), gold and silver Nisk project in Quebec into potentially Canada’s next polymetallic mine.
“This raise will allow Power Nickel to expand the number of rigs exploring the Nisk Project across the already discovered zones such as Nisk and Lion along with the untested EM targets within the project area,’’ Lynch said.
The property is located 55 kilometres east from the Cree Nation of Nemaska Community Eeyo Istchee James Bay territory. It consists of 90 claims covering 4,589 hectares.
Back in February, 2021, Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80% of the Nisk project from Critical Elements Lithium Corp. [CRE-TSXV, CRECF-OTCQX, F12-FSE].
PLR Resources was retained by Power Nickel to produce a mineral resource estimate for the Nisk project, which incorporated historical drilling data and recent drilling programs. Drill hole information up to November 26, 2023. was considered for this estimate. The company announced an indicated open pit resource of 519,000 tonnes of grade 0.84% Nickel Equivalent (NiEq), and an indicated underground resource of 4.9 million tonnes of 1.07% NiEq. On top of that is an underground inferred resource of 1.8 million tonnes of 1.35% NiEq.
The company recently said current plans for the winter 2025 exploration campaign include three drills by mid-February. It said the initial drill will extend the depth and strike extensions of the Lion deposit. It also said the remaining two drills will target the known strike of the ultramafic, including 5.5 kilometres of strike between Nisk and Lion that has not previously been drilled. “This area includes structures and EM anomalies that are similar to the original target that led to the discovery of the Lion in late 2023.