Power Nickel Inc (TSX-V:PNPN) announced that it plans to raise C$2 million through a private placement offering of up to 10 million shares at C$0.20 per share.
The company has secured commitments to close the financing, with closing expected to take place next week, Power Nickel CEO Terry Lynch said.
“These are challenging market conditions but we are making such great progress we just must keep going. I sincerely believe this financing will be the last done at these levels and that junior mining markets are entering a turnaround phase,” Lynch said.
“At Power Nickel in particular, we have had a series of announcements about our ongoing exploration programs and their positive results and expect to report more on that shortly."
The company said the proceeds of the fundraising will be used for general corporate purposes, specifically to fund investor communications programs.
In the past 12 months, Power Nickel has spent approximately $500,000 on awareness and investor communications programs and anticipates it will have similar or larger budgets for these services in 2024.