Fathom Nickel Inc (CSE:FNI, OTCQB:FNICF) announced that it is raising up to C$4.5 million through a non-brokered private placement which will be used to kick off field exploration programs at the Gochager Lake and Albert Lake projects, both located in Saskatchewan, in the first quarter of 2024.
“The focus of the Gochager Lake project exploration program will be following up on the positive results from our recent drill program, most notably the growing inventory of conductive targets at depth as well as the off-hole conductor associated with the zone of massive sulphides encountered in drillhole GL23008," Fathom Nickel chief financial officer Doug Porter said in a statement.
The company is also eager to drill-test a 450-metre by 150-metre conductor identified during its summer 2023 geophysical program at Albert Lake, Porter said.
“This conductor occurs coincident with both a pronounced gravity anomaly as well as highly anomalous metals-in-soil samples in the area of the Tremblay-Olson/Nic5 area at the project,” he said.
“1Q 2024 will be an exciting time for FNI shareholders as we continue to advance our two highly prospective projects.”
The company said that the offering will include a combination of charity flow-through units priced at C$0.17 per share, flow-through units priced at C$0.13 per share, and hard dollar units priced at C$0.11.
Each charity flow-through unit will be made up of one charity flow-through common share and one transferrable common share purchase warrant exercisable by the holder into a common share for 24 months for issuance at C$0.20.
Each flow-through unit will consist of a flow-through common share and one warrant and each hard dollar unit will be made up of one common share and one warrant, Fathom Nickel said.
The offering is expected to close on or about December 18, 2023.
The company's shares rose on the news, adding 12.6% in premarket trade on Monday to US$0.09.
Fathom Nickel is an exploration company that is targeting magmatic nickel sulphide discoveries to support the rapidly growing global electric vehicle market.
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