Power Nickel secures $2.18 million to expand Nisk project

TORONTO – Power Nickel Corp. (TSXV: PNPN) (OTCBB: PNPNF) (Frankfurt: IVV) has completed a private placement raising C$2.18 million through the sale of outstanding units to fund an investigation into access activity at Nisk properties in Quebec, the company announced. The private placement closed on December 29, 2023, with a total of 4,360,000 units at a price of $0.50 per unit.

Proceeds from the sale are earmarked for exploration at the Nix property, where the company plans to deploy a second drill rig to investigate new targets identified using ambient noise tomography technology. The exploration is part of a broader 2024 plan that includes completing a feasibility study with CVMR Inc., divesting copper and gold assets, and guarding against predatory short sellers.

Each unit sold in the private placement consists of one share of common stock and one-half of a warrant, with each whole warrant convertible into one share of exchangeable common stock at a price of $0.50 within three years of issuance. Warrants come with acceleration clauses that can shorten their exercise period under certain conditions.

The company has received conditional approval for the private placement from the TSX Venture Exchange and plans to utilize the 30% federal critical mineral exploration tax credit for Canadian qualified exploration expenditure litigation.

In 2023, Power Nickel significantly increased its NI 43-101 Mineral Resource estimate and plans to continue this trend in 2024. Other plans include completing a feasibility study with CVMR Inc. that proposes a potential 30% increase in mineral recovery compared to concentrates, and a significant increase in finished product revenue.

In addition, Power Nickel plans to divest its copper and gold assets to a new company, Pan American Gold Equities, using the same environmental noise tomography technology in Chile.

The company is also selling royalties from the Copaquire project owned by Teck Resources Limited and is negotiating a 10% stake in Nisk production and an offtake agreement.

Power Nickel CEO Terry Lynch expressed optimism about the company’s ambitious 2024 plans, emphasizing transparent communication with stakeholders and Nisk’s potential to become Canada’s first carbon-neutral central nickel mine.

This article is based on a press release statement and contains only the facts contained in the press release and does not contain speculation or subjective assessment.

This article was created and translated with the help of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.