CVMR Investment to Fund Feasibility Program at Power Nickel Nisk Project
CVMR Investment to Fund Feasibility
Program at Power Nickel Nisk Project
Toronto, Ontario – August 15, 2023 – Power Nickel Inc. (the “Company” or “Power
Nickel”) (TSX-V: PNPN, OTCBB: CMETF, Frankfurt: IVV) Power Nickel is pleased to
enter into an agreement with CVMR Corporation, one of the world’s leaders in Nickel
Powder, Wire and Anode production and a key supplier to the Battery, Defence and
Aerospace industry. CVMR will coordinate the production of advanced bench scale,
piloting and engineering studies on the Nisk Nickel Sulfide project near Nemaska
Quebec to determine project feasibility. The agreement is staged, allowing for Power
Nickel and CVMR to work together on various stages of engineering studies.
CVMR® is a privately held, metal refining technology provider that is also engaged in
mining and refining of its own mineral resources in 18 different countries. The company
was established in 1986, with its head office and R & D Centre in Toronto, Canada.
CVMR® is one of the world leader in metal powder production used in 3D printing,
Metal Injection Molding (MIM), super alloys, complex net shapes, electronics,
rechargeable batteries, manufacture of aerospace and automotive parts, medical
instruments, pharmaceuticals and dietary supplements.
In order to ensure this process was done in the least dilutive way possible Power Nickel
has arranged to have WCPD Group organize a consortium of Quebec based investors
who will make an initial investment of $2.25 million representing 4,500,000 Flow
Through shares at $0.50 per share. Wealth (WCPD Inc.) is one of the leading exempt
market dealer offering efficient financing for Canadian resource and mineral exploration.
As part of the process CVMR will acquire these shares from the front-end purchasers for
$0.25 per share.
“It’s been a creative collaboration working with CVMR on structuring this deal. Given
their access to internal facilities and staff that is far less expensive than how we could
expect to acquire this analysis from traditional suppliers. It also can be done much
quicker than normal and will expedite our plans to commercialize Nisk as rapidly as
humanly possible. The world needs a lot more Class 1 Nickel if we are to hit our Climate
goals.1 Miners and processors must think and act creatively working with our
government and native partners on ways to do this. This is a major step forward for
Nisk” commented Power Nickel CEO Terry Lynch
“We were excited to discover the Nisk project and believe Power Nickel has a very
exciting Nickel project on its hands. We do not yet know how big it can be but we see
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enough there today to believe it has the potential to be a commercial mine. Our initial
focus will be on a 10,000 ton a day plant. The way we like to develop our processing
facilities is to approach them on a modular basis. In this way we can rapidly scale to
match both demand for our products and the availability of supply of the raw material.
In this way we believe we can produce a study that will show robust economics to
justify the commercialization of Nisk. As Terry pointed out in his comments the world
needs a lot more Class 1 Nickel if we are to meet our climate goals” commented CVMR
CEO Kamran Khozan
Power Nickel signed the contract with CVMR on August 2 and CVMR will commence
work on the project immediately and look to produce a various reports and deliverables
over a nine-month period. The Company will pay an initial deposit of $2,250,000 to
CVMR to commence work.
“Initial Industry investment is a note worthy moment. We believe this study will show
there is enough in what we have discovered to become a commercial mine and we
believe in working with CVMR and their scalable approach to manufacturing extremely
high-end Nickel Products. The more we discover the more modules we could add and
the more products. Products that obtain prices 2- and 3-times LME Nickel. This slide
from the CVMR website provides some context on this point. https://www.cvmr.ca/
We believe these products will help us showcase robust economics that will justify rapid
development. The proposed Federal Budget has a 30% tax credit to develop and build
new Critical Mineral mines2 and provincially the Government of Quebec in its budget is
providing for up to a 25% tax credit3. Our governments are doing their part in trying to
build our new energy future with their advanced support of exploration and now
development. Now it’s our turn to show creativity, ingenuity and good old fashioned
hard work to move Nisk rapidly along our stated goal of building the worlds first Carbon
Neutral Nickel Mine.” Commented Power Nickel CEO Terry Lynch
In addition, Power Nickel has also closed on the previously announced $200,000 private
placement of 800,000 units issued at $0.25 per unit will consist of one common share
and one share purchase warrant. Each warrant will consist of one common share
exercisable for five years at $0.25, subject to an accelerated expiry provision. The
warrants are subject to an acceleration clause that entitles the Company to notify
holders that the warrants will expire 30 days from the date the Company provides the
acceleration notice. The Company can only provide the acceleration notice if the closing
price of the Company's common shares on the TSX Venture Exchange is equal to or
greater than $0.50 for ten consecutive trading days. The acceleration notice can be
provided at any time after the statutory hold period. Before the expiry date of the
warrants. The funds raised will be used for general corporate purposes.
About Power Nickel Inc.
Power Nickel is a Canadian junior exploration company focusing on developing the High-
Grade Nisk project into Canada's first Carbon Neutral Nickel mine.
On February 1, 2021, Power Nickel (then called Chilean Metals) completed the acquisition
of its option to acquire up to 80% of the Nisk project from Critical Elements Lithium Corp.
(CRE: TSXV). Subsequently Power Nickel has exercised its option to acquire 50% of the
Nisk Project and delivered notice to Critical Elements that it intends to exercise its second
option to bring its ownership to 80%. The last remaining commitment to ac tivate this
2
3
exercise of the option is the delivery of a NI-43-101 Technical report which is anticipated
to occur at latest in Q4 2023.
The NISK property comprises a large land position (20 kilometers of strike length) with
numerous high -grade intercepts. Power Nickel is fo cused on expanding the historical
high-grade nickel-copper PGE mineralization with a series of drill programs designed to
test the initial Nisk discovery zone and to explore the land package for adjacent potential
Nickel deposits.
In addition to the Nisk p roject, Power Nickel owns significant land packages in British
Colombia and Chile. Power Nickel is expected to reorganize these assets in a related
public vehicle through a plan of arrangement.
Power Nickel announced on June 8 th, 2021, that an agreement ha d been made to
complete the 100% acquisition of its Golden Ivan project in the heart of the Golden
Triangle. The Golden Triangle has reported mineral resources (past production and
current resources) in 130 million ounces of gold, 800 million ounces of sil ver, and 40
billion pounds of copper (Resource World). This property hosts two known mineral
showings (gold ore and Magee), and a portion of the past -producing Silverado mine,
reportedly exploited between 1921 and 1939. These mineral showings are described to
be Polymetallic veins that contain quantities of silver, lead, zinc, plus/minus gold and
plus/minus copper.
Power Nickel is also 100 percent owner of five properties comprising over 50,000 acres
strategically located in the prolific iron -oxide-copper-gold belt of northern Chile. It also
owns a 3 -per-cent NSR royalty interest on any future production from the Copaquire
copper-molybdenum deposit sold to a subsidiary of Teck Resources Inc. Under the terms
of the sale agreement, Teck has the right to acquire one-third of the 3-per-cent NSR for
$3 million at any time. The Copaquire property borders Teck's producing Quebrada Blanca
copper mine in Chile's first region.
For further information on Power Nickel Inc., please contact:
Mr. Terry Lynch, CEO
647-448-8044
For further information, readers are encouraged to contact:
Power Nickel Inc.
The Canadian Venture Building
82 Richmond St East, Suite 202
Toronto, ON
Neither the TSX Venture Exchange nor its Regulation Services Provider
accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This message contains certain statements that may be deemed "forward-looking
statements" with respect to the Company within the meaning of applicable securities
laws. Forward-looking statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential", "indicates", "opportunity",
"possible" and similar expressions, or that events or conditions "will", "would", "may",
"could" or "should" occur. Although the Company believes the expectations expressed
in such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance, are subject to risks and
uncertainties, and actual results or realities may differ materially from those in the
forward-looking statements. Such material risks and uncertainties include, but are not
limited to, among others, the timing for the Company to close the private placement
with WCPD investors, the timing for Company to complete various engineering studies
with CVMR or risk that such transactions or studies do not complete at all on the
anticipated terms; raise sufficient capital to fund its obligations under its property
agreements going forward; to maintain its mineral tenures and concessions in good
standing; to explore and develop its projects; changes in economic conditions or
financial markets; the inherent hazards associates with mineral exploration and mining
operations; future prices of nickel and other metals; changes in general economic
conditions; accuracy of mineral resource and reserve estimates; the potential for new
discoveries; the ability of the Company to obtain the necessary permits and consents
required to explore, drill and develop the projects and if obtained, to obtain such
permits and consents in a timely fashion relative to the Company's plans and business
objectives for the applicable project; the general ability of the Company to monetize its
mineral resources to result in an eventual mine; and changes in environmental and
other laws or regulations that could have an impact on the Company's operations,
compliance with environmental laws and regulations, dependence on key management
personnel and general competition in the mining industry.
1. https://www.goldmansachs.com/intelligence/pages/gs-
research/nickels-class-divide/report.pdf
2.https://www.lexology.com/library/detail.aspx?g=97a4930
3-40f5-453c-a818-fa1612769f02
3. https://www.lavery.ca/en/publications/our-
publications/4332-2023_quebec-budget-tax-holiday-for-
investments-in-critical-and-strategic-minerals.html