Over-subscribed $20 Million Flow-Through Offering closed with the backing of leading mining investors Robert Friedland, Rob McEwen, CVMR, and Terra Capital
Summary
Each flow-through common share will qualify as a flow-through share for purposes of the Income Tax Act (Canada) ("ITA").Industry legends Robert Friedland and Rob McEwen joined with several other leading mining investors, including CVMR Inc. and Terra Capital, to provide the investor buyback of the FT Units financing for Power Nickel. Back-end purchasers acquired the underlying common shares and Warrants from the front-end buyers of the FT Units, at $0.66 per common share and half-Warrant (combined).The Company will use the gross proceeds from the sale of the FT Units for exploration activities on the Companys Nisk property located in Quebec and to incur eligible "Canadian exploration expenses", within the meaning of the ITA, that will qualify for the federal 30-per-cent critical mineral exploration tax credit.The Offering is subject to the Companys final filing requirements with the TSX Venture Exchange ("TSXV") approval. All securities issued under the financing are subject to a hold period of four months and one day from the date of issuance.The Company paid finders fees on the financing, including 265,027 finder warrants exercisable for a period of 18 months from closing into a common share at $1.25 per common share and cash commissions and advisory fees of $387,239.64 as permitted by the policies of the TSXV and applicable securities laws.Power Nickel is a Canadian junior exploration company focusing on developing the High-Grade Nickel Copper PGM, Gold and Silver Nisk project into Canadas next poly metallic mine.On February 1, 2021, Power Nickel (then called Chilean Metals) completed the acquisition of its option to acquire up to 80% of the Nisk project from Critical Elements Lithium Corp. (CRE: TSXV).The NISK property comprises a large land position (20 kilometres of strike length) with numerous high-grade intercepts. Power Nickel is focused on expanding the high-grade nickel-copper PGM, Gold and Silver mineralization with a series of drill programs designed to test the initial Nisk discovery zone, the Lion discovery zone and to explore the land package for adjacent potential poly metallic deposits.In addition to the Nisk project, Power Nickel owns significant land packages in British Colombia and Chile. Such material risks and uncertainties include, but are not limited to, among others; the timing for various drilling plans; the ability to raise sufficient capital to fund its obligations under its property agreements going forward and conduct drilling and exploration; to maintain its mineral tenures and concessions in good standing; to explore and develop its projects; changes in economic conditions or financial markets; the inherent hazards associates with mineral exploration and mining operations; future prices of nickel and other metals; changes in general economic conditions; accuracy of mineral resource and reserve estimates; the potential for new discoveries; the ability of the Company to obtain the necessary permits and consents required to explore, drill and develop the projects and if accepted, to obtain such licenses and approvals in a timely fashion relative to the Companys plans and business objectives for the applicable project; the general ability of the Company to monetize its mineral resources; and changes in environmental and other laws or regulations that could have an impact on the Companys operations, compliance with environmental laws and regulations, dependence on key management personnel and general competition in the mining industry.