Power Nickel reveals C$3 million non-brokered private placement of 10,000,000 FT Units

Power Nickel Inc. has announced a proposed non-brokered private placement of up to 10,000,000 flow-through units (FT Units).

The Company revealed the 10,000,000 FT Units are priced at $0.20 per FT Unit (each an “NFT Unit”) of Power Nickel at the cost of $0.10 per NFT Unit, which will amount to aggregate gross proceeds of up to $3,000,000.

Each FT Unit will be composed of one common share of the Company that qualifies as a flow-through share (FT Share) for purposes of the Income Tax Act (ITA) and one non-flow-through common share purchase warrant. Each Warrant will be exercisable into one non-flow-through common share at an exercise price of $0.20 per Warrant for five years from the date of issuance. Each NFT Unit will be composed of one Common Share and one Warrant. All securities issued under the Private Placement will be subject to a four-month and one-day statutory hold period.

The Warrants will be subject to an acceleration clause which entitles the Company to provide notice (Acceleration Notice) to holders that the Warrants will expire 30 days from the date the Company provides the Acceleration Notice. The Company can only provide the Acceleration Notice if the closing price of the Company’s Common Shares on the TSX Venture Exchange is equal to or greater than $0.40 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 gross proceeds from the sale of the FT Shares to incur eligible “Canadian exploration expenses”, within the meaning of the ITA, that will qualify for the federal 30% Critical Mineral Exploration Tax Credit pursuant to the draft legislation released on August 9, 2022. The Company plans to use approximately $800,000 of the proceeds from the sale of the NFT Units to settle an outstanding debtor. The Company intends to use the remainder of the proceeds from the sale of the NFT Units for general administrative and working capital purposes.

The Private Placement is subject to TSX Venture Exchange approval.

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