Power Nickel (TSXV: PNPN) is expecting its recently announced flow through financing to be oversubscribed. The financing was initially pegged at $5.0 million.
The funding round consists of the sale of flow through units at a price of $0.50 per each, with the company setting out to sell 10.0 million units. Each unit contains one flow through share and one half of a common share purchase warrant.
Warrants are valid for five years from the date of issuance and contain an exercise price of $0.50 per each. Warrants also contain an acceleration clause, whereby if the equity trades above $1.00 for ten consecutive days the company can force the acceleration of the expiry date of the warrants.
“Despite Challenging market conditions our Offering was extremely well received and we are pleased to advise that we will over subscribe the financing. Nisk has been such a great project to work on and our advances at Nisk are recognized by the investment community,” said CEO Terry Lynch.
READ: Becoming the World’s First Carbon-Neutral Nickel Mine — With Terry Lynch of Power Nickel
Proceeds from the financing are slated to be used for the further exploration of the firms Nisk property in Quebec, with funds to be used in a manner that also qualify for the federal 30% critical minerals exploration tax credit.
The financing is currently slated to close March 30.
Power Nickel last traded at $0.23 on the TSX Venture.
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