Fathom Nickel Inc (CSE:FNI, OTCQB:FNICF) has closed the first tranche of its previously announced offering for proceeds of approximately $398,000.
The company issued 8.55 million flow-through common share units (FT units) priced at $0.04 for proceeds of $342,000 and approximately 1.6 million non-flow through units (NFT units) at $0.035 for proceeds of approximately $56,000.
Each NFT unit comprises one common share and one-half of a transferable warrant exercisable at $0.07 for 36 months. Each FT Unit includes one flow-through share and one-half of a warrant.
The proceeds from FT units will fund eligible exploration expenses for the Albert Lake and Gochager Lake projects in Saskatchewan, while NFT unit proceeds will support exploration, development, and corporate purposes.
The second tranche of the NFT is expected to close in mid-January.
Doug Porter, Fathom Nickel CEO, noted that the company had received a request from certain US-based investors and Finders to defer a part of the closing into fiscal 2025.
"As a result, we decided to close on the FT units prior to December 31, 2024 in order to ensure the tax benefits accrued to participants for the 2024 tax year but keep the NFT units open into January 2025 to accommodate these additional investors,” Porter said.