Friedland, McEwen back Power Nickel’s oversubscribed $20M funding

Canadian explorer Power Nickel (TSX-V: PNPN) has closed its recent $20 million “oversubscribed” financing round backed by billionaire investor Robert Friedland and mining veteran Rob McEwen.

The Toronto-based junior said the funds will be use to expand exploration on its 80%-owned Nisk property in Quebec, adding it plans to take advantage of Canada’s federal tax credit for critical mineral exploration. 

Power Nickel, which entered the project in 2021, noted it plans to deploy additional drilling rigs and advance exploration over the summer. The company discovered a new zone expanding mineralization beyond nickel and cobalt to include copper, platinum and palladium. It’s reported strong drill results that have rocketed the stock by 258% this year. 

Nisk, in Quebec’s James Bay region, is expected to become Canada’s first carbon-neutral nickel mine by using carbon capture and hydroelectric power. CEO Terry Lynch describes the project’s attributes in this video. 

Satellite tech

The company has partnered with Australia-based Fleet Space Technologies to use ambient noise tomography to explore for nickel. The method uses satellites and hand-held devices to capture background vibrations and develop 3D images of the subsurface down to 2 km in depth.

Nisk holds 4.9 million indicated tonnes underground grading 0.78% nickel, 0.05% cobalt, 0.42% copper, 0.78 gram palladium per tonne for 38,300 tonnes nickel, 2,400 tonnes cobalt, 20,500 tonnes copper and 123,100 tonnes palladium, according to a recent company filing.

Open pit resources total 519,000 indicated tonnes at 0.63% nickel, 0.04% cobalt, 0.3% copper and 0.56 gram palladium for 3,300 tonnes nickel, 200 tonnes cobalt, 1,600 tonnes copper and 9,400 tonnes palladium.

Early 1960s

Inco, now a part of Vale (NYSE: VALE), discovered nickel on the area in 1962. Golden Goose Resources produced a historical resource for Nisk in 2008 of 2 million measured and indicated tonnes and 783,000 inferred tonnes. Critical Elements Lithium (TXS-V: CRE) bought the site in 2014, but little work was done.

The stock fell 2.3% on Monday morning in Toronto to 86¢ apiece, giving the company a market value of $146.4 million.

Power Nickel also owns significant land packages in Canada’s British Colombia and Chile.