Power Nickel Inc (TSX-V:PNPN, OTCQB:PNPNF) told investors that it has closed an oversubscribed flow-through offering for gross proceeds of about $20 million backed by leading mining investors including Robert Friedland, Rob McEwen, CVMR, and Terra Capital (AIM:TCA).
The junior explorer said it issued 16,049,998 flow-through units at $1.25. Each unit was comprised of one share and one-half share purchase warrant, with each warrant exercisable to purchase a share at $1.25 for three years from the date of issuance.
The proceeds from the offering will be used to incur “Canadian exploration expenses” within the meaning of the tax act at its Nisk project in Quebec, meaning they will qualify for a 30% critical mineral exploration tax credit.
"Power Nickel is grateful for the support of some of the leading investors in mining. Like us, they believe Nisk has exceptional exploration upside,” Power Nickel CEO Terry Lynch said in a statement.
“With this capital, we will be able to substantially increase our already very successful exploration efforts. We currently have one drilling rig targeting the extension of the Lion Zone and soon we will have a second rig advancing the exploration program developed by our team, with substantial guidance from Dr. Steve Beresford.”
The company noted that the offering is subject to final filing requirements with the TSX Venture Exchange approval.