Power Nickel Inc (TSX-V:PNPN) said it has closed the first tranche of its previously announced private placement for 4,000,000 flow-through (FT) units at $0.50 per unit to raise gross proceeds of C$2 million.
"This investment was completed jointly by Rob McEwen and the Lynch family. It was a great vote of confidence to get a Mining Hall of Famer like Rob McEwen to make an initial investment in the company,” Power Nickel CEO Terry Lynch said in a statement.
“The capital markets have been dealing with much fear lately, and raising capital has been challenging. The funds will see us continue drilling into 2024 and is expected to enable us to report our inaugural NI-43-101 mineral resource on the NISK property in November.
“We believe Nisk is the world's most undervalued project of its kind. We encourage investors to review our disclosure when it comes out and come to their conclusion on Nisk" he added.
McEwen, the founder and former chairman of Goldcorp, acquired 2 million FT Units, representing around 1.4% ownership of Power Nickel, the company said, adding that McEwen is the chairman and chief owner of McEwen Mining Inc (TSX:MUX, NYSE:MUX), a gold and silver producer with operations in Nevada, Canada, and Mexico.
Power Nickel expects the balance of the $2.75 million offering to close before month's end.