Power Nickel Inc (TSX-V:PNPN) has raised C$4,192,500 after completing an over-subscribed private placement of 13,750,000 flow-through (FT) units at a price of $0.20 per FT unit and 14,425,000 non-flow-through (NFT) units at a price of $0.10 per NFT unit.
In a statement, CEO Terry Lynch said: “With the new financing we have expanded our drill program and now plan to keep drilling through mid-December and start up again in mid-January.”
“We had planned to drill 5,000 meters and will now add an additional 7,500 to 10,000 meters as we continue to like what we see with our drilling program," he added.
READ: Power Nickel proposes non-brokered private placement of flow-through and non-flow-through units for aggregate gross proceeds of up to C$3M
As per the term sheet, each FT unit consists of one common share of the company that qualifies as a "flow-through share" for purposes of the Income Tax Act (Canada) and one non-flow-through common share purchase warrant.
Each warrant is exercisable into one non-flow-through common share at an exercise price of $0.20 per warrant for a period of five years from the date of issue, while each NFT unit consists of one common share and one warrant.
Around $800,000 of the proceeds from the sale of the NFT units will be used to settle an outstanding debenture with the remaining balance to be used for general administrative and working capital purposes.
“We have made good progress drilling at Nisk," Lynch told investors. “We would expect to get results out starting next week and every two weeks or so after that until the end of February."
The existing resource estimates at the Nisk project are of historic nature and the company's geology team has not completed sufficient work to confirm a NI 43-101 compliant mineral resource, the company said, adding caution is therefore appropriate since these historic estimates cannot, and should not be relied on.
"Nisk has four distinct target areas covering over seven kilometres of strike length. Our focus in our 2022 drill program was on the Nisk Main target. Historically, we know globally these types of deposits typically have multiple pods," the CEO said.
“We are encouraged by what we see on Nisk Main and feel we can continue to build commercial tonnage there but we are also looking forward to exploring Nisk West and the two wildcat targets in subsequent drilling in Q1/Q2 2023."
Contact the author at jeremy@proactiveinvestors.com