Power Nickel (TSXV: PNPN) has begun closing subscriptions to its previously announced $5.0 million flow through financing.
The firm this morning indicated it has closed on the first 3.4 million flow-through units under the offering, raising gross proceeds of $1.7 million in the process.
“We are pleased to close the first Tranche of our previously announced $5,000,000 Private Placement. [..] Once again, 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,” commented CEO Terry Lynch.
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Under the terms of the financing, Power Nickel is looking to raise flow through funds via the issuance of units at $0.50 per each. Each unit contains one flow through share and one half of a transferable non-flow-through common share purchase warrants. Warrants have an exercise price of $0.50 per each, and are valid for a period of five years.
The warrants also contain an acceleration clause, under which the firm can accelerate their expiry if the firms common shares trade above $1.00 for ten consecutive trading days.
Power Nickel previously indicated that it expects its flow through financing to be over-subscribed, with Lynch saying at the time that, “despite challenging market conditions our offering was extremely well received and we are pleased to advise that we will over subscribe the financing.”
Proceeds from the financing are slated to be used for further exploration of the firms Nisk property, found in Quebec.
The company currently expects to close on the remainder of the financing within the next week.
Power Nickel last traded at $0.235 on the TSX Venture.
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