- Junior mining stock Power Nickel (TSXV:PNPN) is announcing an up to C$20 million flow-through offering backed by mining industry luminary Rob McEwen in addition to numerous other leading mining investors
- Proceeds will go towards developing the company’s Nisk project in Quebec, which boasts a nickel equivalent resource estimated at 56,700 tonnes indicated and 24,100 tonnes inferred, or approximately US$1.4 billion in the ground at the current price
- Power Nickel is a Canadian junior mining company developing its high-grade Nisk project into Canada’s first carbon-neutral nickel mine
- Power Nickel stock has added 195.65 per cent year-over-year and 1,260 per cent since 2019
Junior mining stock Power Nickel (TSXV:PNPN) is announcing an up to C$20 million flow-through offering backed by mining industry luminary Rob McEwen in addition to numerous other leading mining investors.
The company will allocate the funds towards exploration on its 80-per-cent-owned Nisk project in Quebec, which will be undertaken to incur eligible Canadian exploration expenses for income tax purposes, including the federal 30 per cent critical mineral exploration tax credit.
It will issue up to 16 million flow-through units priced at C$1.25, with each unit composed of one flow-through common share and half a share purchase warrant, and each warrant exercisable to purchase one common share for C$1.25 for three years from the date of issuance.
McEwen et al. will be able to buy underlying common shares and warrants from front-end investors in the flow-through units at C$0.66 per common share and warrant (combined).
Power Nickel expects the financing to close by the end of June. All securities issued will be subject to a hold period of four months and one day from the date of issuance.
Concurrently, the company has closed a C$200,000 flow-through financing at C$0.80 per share-warrant combo with investors secured by Wealth Creation Preservation & Donation, which is overseeing the C$20 million offering alongside IA Capital Markets.
Why are Rob McEwen and top mining investors backing Power Nickel?
Power Nickel benefits from the notoriety and expertise of high-profile (albeit mostly anonymous) investors thanks to the prospectivity of its Nisk project, whose high-grade and carbon-neutral nickel equivalent resource is estimated at 56,700 tonnes indicated and 24,100 tonnes inferred, or approximately US$1.4 billion in the ground at the current price.
Standout intercept to date includes 18.5 metres of 2 per cent nickel equivalent and 26.6 m of 1.98 per cent nickel equivalent at the NISK Main discovery, and multiple over 10 m zones at the Lion Discovery as high as 8 per cent copper and in excess of 1.6 grams per tonne (g/t) gold, 69 g/t silver and 22 g/t platinum group metals.
These discoveries are only 5.5 kilometres apart, leading management to believe they’re connected underground, opening investors up to considerable upside as the company progresses with ongoing exploration and nickel demand continues on its expected long-term uptrend propelled by global electrification.
Leadership insights
“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,” Terry Lynch, Power Nickel’s chief executive officer, said in a statement. “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.”
About Power Nickel
Power Nickel is a Canadian junior mining company developing its high-grade Nisk project into Canada’s first carbon-neutral nickel mine. The company also owns large land packages in British Columbia and Chile it intends to offer through a related public vehicle.
Power Nickel stock (TSXV:PNPN) last traded at C$0.68 per share. The stock has added 195.65 per cent year-over-year and 1,260 per cent since 2019.
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(Top photo: Power Nickel)