Power Nickel Closes Final Tranche of Financing
Power Nickel Closes Final Tranche of Financing
TORONTO, ON / ACCESSWIRE / May 5, 2023 / Power Nickel Inc. (the "Company" or
"Power Nickel") (TSX-V:PNPN)(OTCQB:PNPNF)(Frankfurt:IVVI) is pleased to announce it
has closed the final tranche of the private placement previously announced on March 13, 2023
(the "Offering") for 1,032,000 flow-through units (each, an "FT Unit") of the Company, at a
price of $0.50 per FT Unit, for gross proceeds of CAD $516,000. The Company has received
conditional TSX Venture Exchange ("TSXV") approval for the Private Placement.
"We are pleased to close the final tranche of our previously announced Private Placement. It
ended up at $4,810,000. We could have hung around for another week and closed more, but we
just wanted to get this closed and focus on getting more great results out on our drilling and
exploration program at Nisk," said Power Nickel CEO Terry Lynch. "At the risk of being
repetitive, we have benefited greatly by having our project in Quebec, where very favorable
incentives exist for Critical Mineral projects like our NISK Nickel Sulfide project at Nemaska."
Lynch commented further, "Quebec, Canada is, in our opinion, the World's leading jurisdiction
for exploration for Critical Minerals. This was further cemented by the recent Quebec and
Canadian budgets, which provide substantial incentives to explore Critical Minerals and build
mines. In our case, this financing is focused on exploration, and we were able to raise twice as
much money with half the dilution. Going forward, the new, unappreciated by the market
incentives, could, for example, advance as much as $200 Million USD to building a $400
Million Nickel Mine. While significant steps remain before determining if a mine would be
viable and the budgets are not yet law, these are substantial incentives that de-risk projects for
investors and enable governments to inspire investment and development in the critical mineral
sector. We look forward to utilizing these incentives on our quest to build the world's first
Carbon Neutral Nickel Mine."
The Company expects to have additional assays available for release next week and believes the
next two months could be among the busiest and best for Power Nickel.
"We are planning to have multiple material releases coming on additional assay results, the
results of the Airborne EM, the release of the results of the metallurgical study, The
commencement of the Fleet Ambient Noise Tomography program, and some potential major
surprises. Nisk is delivering the goods, and we will be working hard to get the word out via our
appearances at multiple conferences and a heavy Podcast schedule," commented CEO Terry
Lynch.
Each FT Unit is composed of one common share of the Company that qualifies as a "flow-
through share" (each, an "FT Share") for purposes of the Income Tax Act (Canada) (the "ITA"),
and one-half of one transferable non-flow-through common share purchase warrant (each whole,
being a "Warrant"). Each Warrant is exercisable into one non-flow-through common share
(each a "Warrant Share") at an exercise price of $0.50 per Warrant Share for five years from
the date of issuance. All securities issued under the Private Placement, including the broker
warrants (described below), are subject to a four-month and one-day statutory hold period. The
Warrants are subject to an acceleration clause that entitles the Company to provide notice (the
"Acceleration Notice") to 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 TSXV is equal to or greater
than $1.00 for ten consecutive trading days. The Acceleration Notice can be provided at any time
after the statutory hold period and before the expiry date of the Warrants.
The Company intends to use the gross proceeds from the sale of the FT Shares for exploration
activities on the Company's NISK property located in Quebec and to incur eligible Canadian
exploration expenses, within the meaning of the ITA, that will qualify for the federal 30%
Critical Mineral Exploration Tax Credit.
The Company paid finder's fees of $30,960 in connection with the closing of the second tranche
of the Offering. It issued 61,920 broker warrants enabling the broker to purchase common shares
for $0.50 until November 4, 2024.
About Power Nickel Inc.
Power Nickel is a Canadian junior exploration company focusing on high-potential copper, gold,
and battery metal prospects in Canada and Chile. 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). The NISK property comprises a
large land position (20 kilometers of strike length) with numerous high-grade intercepts. Power
Nickel is focused on expanding its current high-grade nickel-copper PGE mineralization Ni 43-
101 resource 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.
Highlights
Recent assay results from the current drill program at the Nisk deposit continue to return high-
grade Ni-Cu- Co sulfide and PGE mineralization.
Significant results from this batch of assays include:
40.3m @ 0.88% Ni, 0.56% Cu, 0.06% Co, 1.64 ppm Pd and 0.15 ppm Pt (PN-22-009)
Including:
25.86m @ 1.17% Ni, 0.80% Cu, 0.08% Co, 1.46 ppm Pd and 0.23 ppm Pt
Power Nickel announced on June 8th, 2021, that an agreement had 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 a total of 130
million ounces of gold, 800 million ounces of silver, 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, which was 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, which was 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, please contact:
Mr. Terry Lynch, CEO
647-448-8044, [email protected]
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 (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release 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, the
Company's ability to raise sufficient capital to fund its planned activities at the NISK Property
and for general working capital purposes; the timing for proposed closing of the Private
Placement; the timing and costs of future activities on the Company's properties, including
preparing the Amended Technical Report; maintaining its mineral tenures and concessions in
good standing; changes in economic conditions or financial markets; the inherent hazards
associates with mineral exploration and mining operations; future prices of 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
projects; the general ability of the Company to monetize its mineral resources; 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. Forward-looking
statements are based on the reasonable beliefs, estimates, and opinions of the Company's
management on the date the statements are made. Except as required by law, the Company
undertakes no obligation to update these forward-looking statements in the event that
management's beliefs, estimates or opinions, or other factors should change.
SOURCE: Power Nickel Inc.