Second Rig to Be added to Nisk Exploration
Program
TORONTO, Jan. 9, 2024
/CNW/ - Power Nickel Inc. (the "Company" or "Power
Nickel") (TSXV: PNPN) (OTCBB: PNPNF) (Frankfurt: IVV) is
pleased to announce it has closed a private placement for 4,360,000
flow-through units (each an "FT Unit") of the Company, at a
price of $0.50 per FT Unit, for gross
proceeds of CAD $2,180,000. The FT
Unit closing completed on December 29,
2023, while the balance of the back-end adjustments
completed last week. The Company has received conditional TSX
Venture Exchange ("TSXV") approval for this Private
Placement.
"We are pleased to close this financing to enable us to expand
our exploration programs at Nisk. We will be bringing in a second
drilling rig to focus on drilling the multiple new Pods identified
by our use of the Fleet Space Technologies Ambient Noise Tomography
technology previously reported. The 2024 drilling plans section,
set out below, provides additional detail regarding this exciting
development," said Power Nickel CEO Terry
Lynch.
Each FT Unit is comprised of one common share of the Company
that qualifies as a "flow-through share" (each, an "FT
Share") for purposes of the Income Tax
Act (Canada) (the
"ITA"), and one-half of one transferable non-flow-through
common share purchase warrant (each whole, being a
"Warrant"). Each Warrant is exercisable into one
non-flow-through common share (each a "Warrant Share") at an
exercise price of $0.50 per Warrant
Share for three years from the date of issuance. All securities
issued under the Private Placement are subject to a four-month and
one-day statutory hold period. The Warrants are subject to an
acceleration clause that entitles the Company to provide notice
(the "Acceleration Notice") to holders that the Warrants
will expire 30 days from the date the Company delivers the
Acceleration Notice. The Company can only provide the Acceleration
Notice if the closing price of the Company's Common Shares on the
TSXV is equal to or greater than $1.00 per listed share for ten consecutive
trading days. The Acceleration Notice can be provided at any time
after the statutory hold period and before the expiry date of the
Warrants.
The Company intends to use the proceeds from the sale of the FT
Shares for exploration activities on the Company's 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% Critical Mineral
Exploration Tax Credit.
Power Nickel 2024 Plans
- Advance Nisk Exploration
- Complete CVMR Feasibility Study
- Spin Out Copper and Gold Assets into a Newco via a Plan of
Arrangement
- Complete Sale of Royalty at Teck Owned Copaquire
- Complete Sale of 10% Stake in Power Nickel and 10% Offtake
at Power Nickel to Industry
- Continue to Vigorously defend our shareholders from
predatory short sellers.
Advancing Nisk Exploration
The above 3D view looking east outlines our current
understanding of the location of the multiple pods that exhibit the
same Ambient Noise Tomography Signatures that hosted the current
Nickel Sulfide PGM mineralization at Nisk Main, along with the
PGM-rich "Wildcat Target". Below is a series of longitudinal views
showing the location of these new potential pods ANT 1- through 4.
Size potential is based on our geological interpretation and is
estimated in comparison to the Nisk main mineralized area. The
exploration plan will be to test the Pods and, if successful, focus
additional drilling in this area with a view to delineating another
mineralized zone to add to Nisk Main. Each Pod once successfully
tested would have its own dedicated drilling rig.
"In 2023 Power Nickel was successful in increasing tonnage from
a historical 2.04 Million tonnes (Measured and Indicated) and 1.05
Million tonnes (Inferred) to a NI 43-101 Mineral Resource Estimate
of over 5.43 Million tonnes (Indicated) and 1.79 Million tonnes
(Inferred), a 166% & 74% increase in Indicated & Inferred
resources respectively. For 2024, our primary Exploration Goal
would be to improve on increasing resources while continuously
better understanding the geology of the project. Our strategy would
allow us to quickly show the full growth potential of the project
and firmly position Nisk as one of the most exciting recent mining
discoveries on the planet," commented Power Nickel VP Exploration
Ken Williamson.
2. Completing CVMR Feasibility Study
In August of 2023 Power Nickel entered into a $7.5 Million deal to conduct a Feasibility Study
at Nisk financed by an investment from CVMR Inc.
CVMR® is a privately held, metal refining technology provider
that is also engaged in mining and refining of its own mineral
resources in 18 different countries. The company was established in
1986, with its head office and R & D Centre in Toronto, Canada.
CVMR® is one of the world leaders in metal powder production
used in 3D printing, Metal Injection Molding (MIM), super alloys,
complex net shapes, electronics, rechargeable batteries,
manufacture of aerospace and automotive parts, medical instruments,
pharmaceuticals and dietary supplements.
To further the Feasibility Study, Power Nickel expects to
receive the results of the benchmark studies conducted by CVMR in
Q1, the prototype results in Q2 and the report in Q3. Preliminary
results suggest up to a 30% improvement in mineral recovery by
making a finished product at the mine versus the more conventional
concentrate. In addition, CVMR notes that revenue for finished
products versus concentrate has historically been 2.5-3X the LME
price for Nickel.
"The CVMR investment is an exciting one for Power Nickel in
every respect. It should greatly enhance our economic returns,
broaden our end product lineup thus sharply reduce cyclicality of
returns, and it will also enable us to potentially produce the
world's first Carbon Neutral Nickel products. A successful
Feasibility Study with CVMR should speed up the construction
decision at Nisk and showcase its substantial economic potential,"
commented Terry Lynch Power Nickel CEO.
3. Spinning Out Copper & Gold Assets into
Newco via Plan of Arrangement
It is expected in February that Power Nickel will announce the
terms of the Plan of Arrangement and complete it in Q2. At that
time, we would expect to have fully funded the spinout initial
plans privately while unassociated with the Power Nickel balance
sheet. Our expectation is that we would sell 10% of the Newco for
10% of the Valuation of the Newco at "spin out" which we believe
will be in the $10-15 Million
range.
This funding will pay for the new Ambient Noise Tomography of
our projects in Chile. This will
be the first time this technology will be used in Chile. Invented in Australia, it has been very successful in
West Australia which has a desert
environment like Chile.
"The Newco to be likely called Pan American Gold Equities
will be a very substantial bonus for our shareholders and we think
the exploration potential of our said gold and copper projects will
be greatly enhanced using this exciting new technology that has
been very well tested in a desert environment," stated Power Nickel
CEO Terry Lynch.
4. Completing Sale of Royalty at Teck Owned
Copaquire
Power Nickel has recently retained Voltaire Mineral Partners of
Zug Switzerland to conduct a sales process on our existing royalty
rights on the Copaquire project which we sold several years ago to
Teck Resources Limited.
The project has a historic 43-101 resource of over 100,000,000
tonnes of Copper mineralization at 0.4% grade CuEQ (Source:
Charchafile, Jaramillo NI 43-101 Technical Report, dated
Jan 30, 2012) and several exploration
opportunities.
Power Nickel hopes and would expect to complete this process in
H1 of 2024
5. Completing sale of 10% Stake and 10% Offtake
to Industry
Power Nickel plans to sell both a 10% stake in the Company and a
10% offtake agreement on the production from any future mine at
Nisk during H1 of 2024.
"Now that we have a current 43-101 mineral resource and a firm
exploration plan, we have allowed several industry groups to access
our data room to enable them to assess their interest in acquiring
a stake in Power Nickel and in a potential offtake agreement. Given
the scarcity of quality Nickel Class 1 assets and the potential
Nisk has exhibited, we expect a robust market for this incoming
investment opportunity. The funds to be received likely will be
spread over two years and done in a way to leverage the 2:1
exploration funding Power Nickel has been able to generate; thanks
to Quebec and Canada's attractive Critical Mineral tax
incentive programs. Doing an investment this way will de-risk the
investment for our offtake partner, maximize funds for Power
Nickel's ongoing exploration at Nisk, and speed up the exploration
and development at Nisk," stated Terry Lynch Power Nickel CEO.
6. Continue to defend Power Nickel from
predatory short sellers.
On December 12th, we
filed a complaint with CIRO and FINRA on the irregularities we have
discovered in the trading of Power Nickel stock.
https://www.newswire.ca/news-releases/power-nickel-files-complaint-on-widespread-potential-illegal-short-selling-of-its-shares-873440599.html#:~:text=TORONTO%2C%20Dec.,position%20imbalances%20for%20its%20stock.
Power Nickel will continue to work with fellow mining companies
and advocacy group Save Canadian Mining to ensure that predatory
short selling ceases to be a factor in the trading of its
shares.
"As you can see from our 2024 plans, we have a very ambitious
program for this year. We look forward to communicating
transparently with our interested stakeholders during 2024 at
conferences, via podcasts, Zoom calls, and in person. Our website
http://www.PowerNickel.com has a wealth of information and provides
various options on how we can answer questions from our
shareholders. Together, we look forward to a very exciting and big
year," added Power Nickel CEO Terry
Lynch.
About Power Nickel Inc.
Power Nickel is a Canadian junior exploration company focusing
on developing the High-Grade Nickel Nisk project into Canada's first Carbon Neutral nickel 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). Subsequently, Power Nickel has
exercised its option to acquire 50% of the Nisk Project and
delivered notice to Critical Elements that it intends to exercise
its second option to bring its ownership to 80%. The last remaining
commitment to activate this exercise is delivering a NI 43-101
Technical Report, which is anticipated to occur within the coming
week.
The NISK property comprises a significant land position (20
kilometers of strike length) with numerous high-grade intercepts.
Power Nickel is focused on expanding the historical high-grade
nickel-copper PGM mineralization with a series of drill programs
designed to test the initial Nisk discovery zone and to explore the
land package for adjacent potential Nickel deposits.
In addition to the Nisk project, Power Nickel owns significant
land packages in British Colombia
and Chile. Power Nickel is
expected to reorganize these assets in a related public vehicle
through a plan of arrangement.
Power Nickel announced on June 8,
2021, that an agreement had been made to complete the 100%
acquisition of its Golden Ivan
project in the heart of the Golden Triangle. The Golden Triangle
has reported mineral resources (past production and current
resources) in 130 million ounces of gold, 800 million ounces of
silver, and 40 billion pounds of copper (Resource World). This
property hosts two known mineral showings (Gold Ore and Magee) and
a portion of the past-producing Silverado mine, reportedly
exploited between 1921 and 1939. These mineral showings are
Polymetallic veins containing quantities of silver, lead, zinc,
plus/minus gold, plus/minus copper.
Power Nickel is also 100% owner of five properties comprising
over 50,000 acres strategically located in the prolific
iron-oxide-copper-gold belt of northern Chile. It also owns a 3-per-cent NSR royalty
interest on any future production from the Copaquire
copper-molybdenum deposit sold to a subsidiary of Teck Resources
Inc. Under the terms of the sale agreement, Teck has the right to
acquire one-third of the 3-per-cent NSR for $3 million at any time. The Copaquire property
borders Teck's producing Quebrada Blanca copper mine in
Chile's first region.
Neither the TSX Venture Exchange nor it's Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding
Forward-Looking Statements
This message contains certain statements that may be deemed
"forward-looking statements" concerning the Company within the
meaning of applicable securities laws. Forward-looking statements
are statements that are not historical facts and are generally, but
not always, identified by the words "expects," "plans,"
"anticipates," "believes," "intends," "estimates," "projects,"
"potential," "indicates," "opportunity," "possible" and similar
expressions, or that events or conditions "will," "would," "may,"
"could" or "should" occur. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance, are subject to risks and uncertainties, and
actual results or realities may differ materially from those in the
forward-looking statements. Such material risks and uncertainties
include, but are not limited to, among others, the timing and
ability to complete the 2024 plans identified and the risk that
such transactions do not close at all; raise sufficient capital to
fund its obligations under its property agreements going forward;
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 Company's 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 Company's operations, compliance with environmental
laws and regulations, dependence on key management personnel and
general competition in the mining industry.
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SOURCE Power Nickel Inc.