Power Nickel Inc (TSX-V:PNPN) told investors it has closed a private placement, raising C$2.18 million in gross proceeds from the issuance of 4,360,000 flow-through units. The financing is earmarked for expanding exploration programs at its Nisk property in Quebec.
Outlining its plans for 2024, the company said it aims to use the proceeds from the sale of the FT shares for exploration activities and eligible Canadian exploration expenses, seeking to qualify for the federal 30% Critical Mineral Exploration Tax Credit.
It noted that multiple pods at Nisk exhibit the same Ambient Noise Tomography Signatures that hosted the current Nickel Sulfide PGM mineralization at Nisk Main, along with the PGM-rich "Wildcat Target".
The exploration plan will be to test the Pods and, if successful, focus additional drilling in this area to delineate another mineralized zone to add to Nisk Main. Each Pod once successfully tested would have its own dedicated drilling rig.
"We will be bringing in a second drilling rig to focus on drilling the multiple new Pods identified by our use of the Fleet Space Technologies Ambient Noise Tomography technology," CEO Terry Lynch commented in a statement.
VP Exploration Ken Williamson highlighted the remarkable achievements of 2023, with a significant increase in mineral resources from a historical 2.04 million tonnes (Measured and Indicated) and 1.05 million tonnes (Inferred) to a NI 43-101 Mineral Resource Estimate of over 5.43 million tonnes (Indicated) and 1.79 Million tonnes (Inferred), a 166% and 74% increase in Indicated & Inferred resources respectively.
"For 2024, our primary Exploration Goal would be to improve on increasing resources while continuously better understanding the geology of the project," Williamson added.
"Our strategy would allow us to quickly show the full growth potential of the project and firmly position Nisk as one of the most exciting recent mining discoveries on the planet."
Power Nickel is currently engaged in a CVMR Feasibility Study at Nisk, with early results suggesting a potential 30% improvement in mineral recovery by producing a finished product directly at the mine.
"The CVMR investment is an exciting one for Power Nickel in every respect. It should greatly enhance our economic returns, broaden our end product lineup thus sharply reduce cyclicality of returns, and it will also enable us to potentially produce the world's first Carbon Neutral Nickel products," Lynch said.
"A successful Feasibility Study with CVMR should speed up the construction decision at Nisk and showcase its substantial economic potential."
Spin out copper and gold assets
The company also expanded on its plans to spin out its copper and gold assets into a new company through a Plan of Arrangement. It expects to announce the terms in February, with completion targeted for the second quarter of 2024. It anticipates selling 10% of the new company for 10% of its valuation, likely to be in the $10 million to $15 million range, providing additional funding for new Ambient Noise Tomography of our projects in Chile.
"The Newco to be likely called Pan American Gold Equities will be a very substantial bonus for our shareholders and we think the exploration potential of our said gold and copper projects will be greatly enhanced using this exciting new technology that has been very well tested in a desert environment," Lynch said.
Completing sale of royalty at Teck-owned Copaquire
Power Nickel said it is also progressing with the sale of its existing royalty rights at the Copaquire project it sold to Teck Resources several years ago and hopes to complete the process in the first half of the year.
Additionally, it plans to sell a 10% stake in the company along with a 10% offtake agreement on the production of any future mine at Nisk during the first half.
"Now that we have a current 43-101 mineral resource and a firm exploration plan, we have allowed several industry groups to access our data room to enable them to assess their interest in acquiring a stake in Power Nickel and in a potential offtake agreement," Lynch added.
"Given the scarcity of quality Nickel Class 1 assets and the potential Nisk has exhibited, we expect a robust market for this incoming investment opportunity."
Predatory short sellers
Referring to recent complaint filed with CIRO and FINRA, Lynch affirmed Power Nickel's commitment to collaboration with fellow mining companies and advocacy group Save Canadian Mining to curb predatory short selling.
"As you can see from our 2024 plans, we have a very ambitious program for this year," he concluded.
"We look forward to communicating transparently with our interested stakeholders during 2024 at conferences, via podcasts, Zoom calls, and in person."
Power Nickel's shares traded 2.1% higher at C$0.24 by 2pm in Toronto.
~Updated with share price movement~