Power Nickel Inc (TSX-V:PNPN, OTCQB:PNPNF) announced plans for a $20 million flow-through offering to support exploration activities on its Nisk property in Quebec.
The company said that industry legend Rob McEwen is a backer in the financing.
"In life you are often judged by the company you keep, and, in this respect, we think every Power Nickel shareholder wins through this association with some of the most legendary and successful mining investors on the planet,” Power Nickel CEO Terry Lynch said in a statement.
“Clearly, they are as excited about the potential for Nisk as we are, and this raise will allow us to really ramp up our exploration efforts over the next 12-18 months."
The offering will comprise up to 16 million flow-through units (FT Units) priced at $1.25 per unit, each consisting of one flow-through common share and a half share purchase warrant. Each warrant allows the purchase of one common share at $1.25 within three years from issuance.
Wealth Creation Preservation & Donation Inc. (WCPD) and IA Capital Markets will manage the financing. Back-end purchasers may acquire the underlying common shares and warrants from the front-end buyers of the FT Units at $0.66 per share and warrant combined.
Power Nickel plans to close the financing by the end of June, pending TSX Venture Exchange approval.
Additionally, Power Nickel completed a previous flow-through financing of $200,000, issuing 250,000 FT Units at $0.80 each. The proceeds will also be used for exploration on the Nisk property.