Power Nickel (TSXV: PNPN) is looking for further funding to continue the development of its flagship Nisk nickel-copper PGE property in Quebec. The firm last night indicated it will be raising flow through funds as a means of furthering the development of the project.
The company intends to raise gross proceeds of up to $5.0 million via the sale of 10.0 million flow through units at a price of $0.50 per unit. Each unit is to contain one flow through share and one half of a common share purchase warrant. Warrants are to be valid for a period of five years and contain an exercise price of $0.50 per share.
The warrants are also subject to an acceleration clause, enabling Power Nickel to accelerate their expiry should the stock close above $1.00 for ten consecutive days.
Proceeds from the financing are to be used for exploration activities at the Nisk property, and to incur eligible exploration expenses that qualify for the critical mineral exploration tax credit.
Drilling is currently underway at Nisk, with Power Nickel recently expanding its ongoing drill program by up to 10,000 metres. The expansion to the program builds upon recent success seen at the project, including intersects of 1.40% nickel over 10.3 metres, among other results.
Power Nickel last traded at $0.25 on the TSX Venture.
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