Fathom Nickel (CSE:FNI) Inc plans to undergo a best efforts non-brokered private placement financing to raise total gross proceeds of C$2 million.
The offering will include a combination of charity flow-through units priced at $0.19, flow-through units priced at $0.155 and hard dollar units priced at $0.135.
Crescat Capital LLC has agreed to make a strategic investment for up to 25% of the offering, the company said.
"High-grade nickel sulphide discoveries have been exceedingly scarce in North American lately," said Quinton Hennigh, Crescat’s geologic and technical director. "Fathom's recent high-grade drill intercepts at Gochager Lake might prove to break this drought.
Once the offering is complete, Crescat is expected to own or control approximately 19% of the common shares of Fathom on a partially diluted basis.
“The 18.1-meter intercept of 2.43% nickel, 0.51% copper and 0.18% cobalt within 58.2m of 1.49% nickel, 0.38% copper and 0.11% cobalt in hole GL23003 resembles grades and widths of drill intercepts encountered at the Nova-Bollinger discovery in Western Australia a few years ago,” Hennigh said. “An off-hole EM anomaly seen outboard from this remarkable intercept appears to be exceptionally strong suggesting the potential presence of a major sulphide body nearby. We are very anxious to see Fathom undertake follow up drilling of this anomaly as soon as possible."
Proceeds from the charity and flow-through units will be used for general exploration expenditures, the company said.
"The proceeds from this financing will put Fathom in a great position to commence a field exploration program at the Gochager Lake Project in June, with a focus of following-up on the very impressive results from our recent drill program", chief financial officer Doug Porter said.
"We are particularly pleased that Crescat has agreed to participate in the offering in such a significant manner. Crescat has been a fantastic supporter of Fathom since their initial investment in our IPO financing. Additionally, the experience and technical insights of Dr Hennigh have proven invaluable to Ian and our geological team. We look forward to continuing to strengthen our relationship with Crescat as we advance exploration at our Gochager Lake and Albert Lake projects."
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel