FULL DISCLOSURE: This is sponsored content for Power Nickel.
Power Nickel (TSXV: PNPN) has secured an investment from Mining Hall of Famer Rob McEwen for the further development of the Nisk nickel project in Quebec.
The investment was part of a flow through financing that saw the company secure $2.0 million in investment. 4.0 million units of the company were sold at a price of $0.50 per each, with Rob McEwen taking down 2.0 million units for a $1.0 million investment. The investment amounts to a 1.4% stake in the company.
“This investment was completed jointly by Rob McEwen and the Lynch family. It was a great vote of confidence to get a Mining Hall of Famer like Rob McEwen to make an initial investment in the Company. The capital markets have been dealing with much fear lately, and raising capital has been challenging. The funds will see us continue drilling into 2024 and is expected to enable us to report our inaugural NI-43-101 mineral resource on the NISK property in November,” commented Power Nickel CEO Terry Lynch.
McEwen is the founder and former chairman of Goldcorp, which discovered the Red Lake Mine, and was acquired by Newmont Mining in 2019 for US$10 billion. He currently is the Chairman and chief owner of McEwen Mining, a gold and silver producer.
READ: Power Nickel To Raise $2.75 Million For Further Exploration At Nisk
Units of the offering consisted of one flow through share and one half of a common share purchase warrant. Each warrant contains an exercise price of $0.50 per whole share, has an expiry of three years from the date of issuance, and contains an acceleration clause. That clause enables the forced acceleration of the warrant in the event that the company’s shares trade above $1.00 for a period of ten consecutive sessions.
Proceeds from the financing are to be used for the further development of the Nisk nickel property. A previously announced $750,000 financing is anticipated to close before month end.
Power Nickel last traded at $0.21 on the TSX Venture.
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