Power Nickel Inc (TSX-V:PNPN, OTCQB:PNPNF) said on Tuesday it is increasing its previously announced private placement offering by up to C$10 million, bringing the total proceeds to C$50 million due to strong investor demand.
The upsized offering includes C$40 million in Quebec flow-through shares priced at C$2.83 each and up to C$10 million in non-flow-through common shares at C$1.45 apiece, the company said in a statement.
BMO Capital Markets and Hannam & Partners are acting as joint bookrunners for the offering, which is expected to close on or about February 27.
Existing shareholders, including mining financier Robert Friedland, are participating in the upsize.
Power Nickel plans to use proceeds from the flow-through shares for exploration expenses in Canada, while funds from the common shares will go toward working capital and general corporate purposes.