Power Nickel raises $40M for Quebec project

Advisor Steve Beresford, VP exploration Ken Williamson, and Adam Findley of GeoVector Management at one of the four summer drilling platforms. Credit: Power Nickel

Power Nickel (TSX-V: PNPN) has stated the pricing of its private placement to raise about $40 million (US$28 million) for exploration at its Nisk nickel-copper-platinum group metals project in Quebec.

The offering consists of 14.14 million Quebec flow-through shares priced at $2.83 each, with BMO Capital Markets and Hannam & Partners acting as joint bookrunners, alongside a syndicate of agents, the explorer said Thursday. 

“The company is thrilled to announce this placement and appreciates the continued support of Robert Friedland and Rob McEwen, among other current shareholders, as it looks forward to the exciting winter 2025 drill program and summer 2025 program,” Power Nickel CEO Terry Lynch said in a release.

After gaining 5¢ on Thursday, Power Nickel shares slid 2.5% on Friday morning in Toronto to $1.58 apiece for a market capitalization of $317 million. 

Nisk project

The previously disclosed “best efforts” offering is expected to close around Feb.  27, subject to regulatory approvals including from the TSX Venture Exchange.

Power Nickel entered the project in 2021. The Toronto-based junior miner plans to develop Nisk, located in Quebec’s James Bay region, as Canada’s first carbon-neutral nickel mine, leveraging carbon capture and hydroelectric power.

The project includes the Nisk and Lion zones, along with untested electromagnetic targets.

According to the company, the Nisk main zone features high-grade class-one nickel with intercepts of 18.5 metres at 2% nickel equivalent and 26.6 meters at 1.98% nickel equivalent.

The Lion Discovery showcases zones with copper up to 8%, PGMs over 22 grams per tonne, gold over 1.6 grams per tonne, and silver over 69 grams per tonne.

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