Power Nickel to raise $28M for polymetallic project in Québec
Power Nickel (TSXV: PNPN) has priced its recently announced private placement at C$2.83 a share, raising approximately C$40 million ($28 million) for its Nisk nickel-copper-platinum group metals project in Québec.
Under the offering, the Toronto-based miner will issue approximately 14.14 million Québec flow-through shares. BMO Capital Markets and Hannam & Partners are acting as joint bookrunners, alongside a syndicate of agents.
Power Nickel’s shares traded 2.8% higher by Thursday’s market close at C$1.64 apiece, with a market capitalization of C$322 million ($227 million).
“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 news release.
The offering is expected to close around Feb. 27, 2025, subject to regulatory approvals, including that of the TSX Venture Exchange.
Power Nickel entered the project in the James Bay region in 2021 and plans to develop it 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-1 nickel with intercepts of 18.5 metres at 2.00% nickel equivalent and 26.6 metres 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.
“This raise will allow Power Nickel to expand the number of rigs exploring the Nisk project across the already discovered zones such as Nisk and Lion along with the untested EM targets within the project area,” added Lynch.