Power Nickel Inc (TSX-V:PNPN) said it has closed the final tranche of its private placement, raising C$516,000 (US$410,000) from the sale of 1,032,000 flow-through units at $0.50 each.
The company said it intends to use the gross proceeds to fund exploration activities at its Nisk nickel project and to incur eligible Canadian exploration expenses that will qualify for the federal 30% Critical Mineral Exploration Tax Credit.
Power Nickel's CEO, Terry Lynch, said that although the company could have raised more funds, he was happy to close the deal and focus on getting results from the drilling and exploration program at the Nisk Nickel Sulfide project in Quebec.
He noted that the project has benefited from incentives for critical mineral projects, such as those that exist in Quebec. "Quebec, Canada is, in our opinion, the World's leading jurisdiction for exploration for Critical Minerals," Lynch said.
Lynch said the company had been able to raise twice as much money with half the dilution, thanks to new incentives, which could, for example, advance up to $200mln to build a $400mln nickel mine.
The CEO noted that the next two months could be some of the busiest and best for Power Nickel, as the company expects to have additional assays available next week and several material releases coming out.
Power Nickel is a Canadian junior exploration company focusing on high-potential copper, gold, and battery metal prospects in Canada and Chile. The company completed the acquisition of its option to acquire up to 80% of the Nisk project from Critical Elements Lithium Corp in February 2021.
Contact the author at jon.hopkins@proactiveinvestors.com