Power Nickel Inc (TSX-V:PNPN) said it has completed the second tranche of its previously-announced C$5 million private placement, raising C$2,585,000 by issuing 5.17 million company flow-through (FT) units at a price of $0.50 per FT unit.
The junior explorer noted that it intends to use the gross proceeds from the FT offering for exploration activities on its NISK property in Quebec and to incur eligible Canadian exploration expenses that will qualify for the federal 30% Critical Mineral Exploration Tax Credit.
Each FT unit was comprised of one Power Nickel common share plus one-half of one transferable non-flow-through common share purchase warrant, with each warrant being exercisable into one non-flow-through company common share, at an exercise price of $0.50 per warrant share, for five years from the date of issuance.
As well, Power Nickel said a company controlled by a Power Nickel director and officer was a back-end purchaser of 630,000 common shares and 315,000 warrants from the front-end purchaser of FT units.
The company added that it paid finder's fees of $140,100 in connection with the closing of the second tranche of the offering and issued 310,200 broker warrants, enabling the broker to purchase common shares for $0.50 each until October 25, 2024.
Furthermore, Power Nickel stated that it anticipates closing the balance of the announced $5 million financing of $706,000 in early May 2023.
Power Nickel is a junior explorer focused on high-potential copper, gold, and battery metal prospects in Canada and Chile. Its NISK property comprises 20 kilometres (km) of strike length with numerous high-grade intercepts.
Contact Sean at sean@proactiveinvestors.com