FULL DISCLOSURE: This is sponsored content for Power Nickel.
Power Nickel (TSXV: PNPN) has exercised its first option to obtain an ownership interest in its flagship NISK nickel PGM property in Quebec.
The exercising of the first option sees Power Nickel take a 50% ownership stake in the property, as per an agreement the company entered on February 25, 2021. Several conditions needed to be met to be able to exercise the option, including a cash payment of $500,000 and the issuance of 12.1 million shares, both of which were completed in 2021.
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In addition to payment, the company was required to incur a total of $2.8 million in work expenditures on the property within three years, which has now been completed.
A second option agreement requires additional work expenditures of $2.2 million and the delivery of a resource estimate. Once completed, this will take Power Nickel’s ownership in the property to 80%. The remaining obligation for this option is the delivery of a resource estimate, which the company intends to delivery early in the fourth quarter at the latest.
Power Nickel has already conveyed that it intends to exercise this second option.
READ: Power Nickel To Spin-Out Non-Core Assets
“Nisk has been an amazing success story for Power Nickel and Critical Elements. The exploration success is building, and we are confident the best is yet to come. We look forward to getting our technical resources out there and completing a Feasibility study on the project. That will be the last condition prior to entering a true 80:20 JV with our partner Critical Elements,” commented Power Nickel CEO Terry Lynch.
The company continues to push forward with the development of the project by announcing two key hires this morning that are expected to assist in driving the project to becoming the first carbon neutral nickel mine in Canada. Kenneth Williamson, the founder of 3DGeo Solutions, joins the company in the role of Vice President of Exploration, while Duncan Roy joins the company as Vice President of Investor Relations.
Power Nickel last traded at $0.23 on the TSX Venture.
FULL DISCLOSURE: Power Nickel is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Power Nickel. The author has been compensated to cover Power Nickel on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
