14.06.2024, Author: André Will-Laudien

POWER NICKEL - Now the big players are buying — Sensational CAD 20 million financing committed

  • strategic metals
  • polymetals
  • gold and silver
  • copper
  • nisk
  • commodities

Canadian polymetallic expert Power Nickel is going from strength to strength. In the past few days, a new 8,000 m drilling program has been announced, and now a major player has joined in: Rob McEwen. He is best known as the founder of Goldcorp Inc., and under his leadership, the Company became one of the largest gold producers in the world. With his company, McEwen Mining, he was involved in several major projects, including the El Gallo Mine in Mexico and the San José Mine in Argentina. Now, he is involved with Power Nickel - and not without good reason. The top property, "Nisk" in mining-friendly Quebec, offers huge polymetallic deposits and still has plenty of potential for surprises.

ISIN: CA7393011092
Last price, Frankfurt, June 13, 2024 0.495 EUR
Number of shares 163.91 Mio.
Marketcap. 115.87 Mio. CAD
Industry, sector Raw materials, polymetals
Catalysts New discovery in polymetals, upward cycle in industrial metals
Flagship project NISK, Quebec (Canada)
CEO Terry Lynch

Power Nickel Inc. - A polymetallic sensation

Power Nickel (WKN: A3CUEW | ISIN: CA7393011092 | Ticker Symbol: IVV) is a Canadian junior exploration company that originally focused on developing the high-grade Nisk project into Canada's first carbon-neutral nickel mine and has now discovered additional value drivers. The Nisk property covers a significant 20 km property with numerous high-grade intercepts in a variety of metals. Power Nickel is focused on expanding the historic high-grade nickel-copper-PGE mineralization. In early June, it was announced that the 2024 summer program has commenced with a planned 20 drill holes of more than 8,000 m. In parallel, Power Nickel is expanding exploration for additional zones of mineralization with high-grade copper, platinum, palladium, gold, silver, and nickel in the Lion Zone (Nisk concession area).

A larger series of actions is now underway! As a follow-up to the successful results achieved in the Lion Zone, the focus of the summer drill program will be to demonstrate even greater continuity at depth and test for lateral occurrences of similar polymetallic mineralized sulphide lenses. The initial drill holes are designed to test the area below PN-24-051, PN-24-059, and PN-24-062, the three deepest intersections to date.

In addition to nickel, Power Nickel is focused on expanding the historic high-grade nickel-copper-PGE mineralization with a series of drill programs. Source: Power Nickel, Company Presentation May 2024

Following promising preliminary electromagnetic exploration, the first discovery was made by drilling an identified anomaly associated with a surface expression of ultramafic rock. Two further areas of identified anomalies are now being investigated in more detail. Of particular interest will be what is found on the neighboring properties. Power Nickel (WKN: A3CUEW | ISIN: CA7393011092 | Ticker symbol: IVV) with its land packages, is currently one of the most promising owners of several strategic metals for securing resources for Western industries.

Power Nickel brings well-known commodity investor on board

The news hit like a bombshell yesterday! The former founder of Goldcorp Inc. and commodities legend Rob McEwen is guaranteeing Power Nickel's current capital increase. The so-called flow-through offering, with gross proceeds of up to CAD 20 million, is aimed at existing and new investors through the issuance of up to 16 million units. One unit consists of one share at a price of CAD 1.25 plus a half warrant to purchase an additional share at CAD 1.25 within 3 years.

Terry Lynch shows great flair in building Power Nickel - NISK could become one of the first carbon-neutral mining operations. Source: Power Nickel, 2024

"Throughout life, one is often judged by the company they keep, and in that regard, we believe every Power Nickel shareholder wins through this association with some of the world's most legendary and successful mining investors. Clearly, they are as excited about Nisk's potential as we are, and this capital raise will allow us to ramp up our exploration efforts over the next 12 to 18 months," said CEO Terry Lynch.

The Company will be working with Wealth Creation Preservation & Donation Inc. ("WCPD") and IA Capital Markets on the financing. The Company intends to use the gross proceeds from the sale of the FT Units for exploration activities on the Company's Nisk property in Quebec and to incur Canadian exploration expenditures under the ITA that qualify for the 30% federal critical mineral exploration tax credit. The Company expects to complete the financing before the end of June.

Best relationships with top geologists

In May, Power Nickel (WKN: A3CUEW | ISIN: CA7393011092 | Ticker symbol: IVV) secured internationally recognized geoscientist and polymetallic specialist Dr. Steve Beresford as a special advisor. Dr. Beresford (FAIG, FSEG) has served as Chief Geologist for three major mining companies, lecturer and professor, and founder of several exploration companies, among other roles. He began his career with WMC Resources and has conducted exploration work in 66 countries, primarily in magmatic nickel-copper-PGE deposits. He is currently a professor at the University of Western Australia and a board member of Agemera in Europe.

For Dr. Beresford, the Nisk project is a good example of how large polymetallic systems can be found. High-grade nickel is a geological indicator of much more mineralization, so Nisk is more like large PGM deposits such as Norilsk (Russia), Jinchuan (South Africa) or Sakatti (Finland).

Dr. Beresford explained: "Nisk has the geodynamic conditions and exploration characteristics of a zoned metal system, which is why I look forward to joining the Power Nickel team in advancing and converting Nisk into a polymetallic deposit."

Geopolitical uncertainties and increasing demand for strategic metals

The geopolitical uncertainties of recent months show an unbroken demand for critical metals around the globe. In the search for secure suppliers, Western industry cannot avoid securing suitable sources of supply. The imposition of punitive tariffs on Chinese e-vehicles in the US has also triggered the next round of the trade war between the US and China. It is not unlikely that China will ration the supply of essential metals to the West at some point. The increasing military build-up in the NATO area is also leading to an increased demand for rare raw materials and industrial metals. Precious metals are once again in focus, as they have provided a hedge against political upheaval and unrest in the financial systems for decades in addition to securing value.

10 reasons for an outstanding risk/reward ratio with Power Nickel

  • Gradual development of a promising polymetallic project with high potential
  • Current NI 43-101 resource estimate and "dream drill hole" PN-24-051
  • Excellent study partner CVMR and high-quality nickel processor
  • Close to a major highway with direct access to power supply from green producer Hydro Quebec
  • Quebec, Canada, is one of the best countries for sustainable mining in the world
  • Need for sustainable production outside Asia, given increasing market concentration and geopolitical uncertainties
  • Demand boom for strategic metals continues unabated
  • Best environmental and social implementation of ESG principles (ESG/SR 2022 report)
  • Spin-off of gold and copper assets sharpens the equity story and creates shareholder value
  • General higher valuation of metals and resources due to new commodity cycle in 2024

Conclusion: Full speed ahead in the commodity supercycle

Power Nickel once again shows how well-connected management is in the commodities circle. So far, capital increases have been raised at a significantly higher market price. With the 20 million financing now announced, the cash requirements for exploration are secured until 2026. The Power Nickel share (WKN: A3CUEW | ISIN: CA7393011092 | Ticker symbol: IVV) traded close to its high of CAD 0.70 to 0.75 yesterday amid heavy trading. Despite the sharp rise in recent weeks, the share has maintained the level reached and is now even financing at a significantly higher level. The next few months should be extremely exciting, as every drill hole could deliver another "golden hole". Power Nickel shares thus remain one of the most promising explorer investments in Canada.

Power Nickel shows a convincing development in the 2-year chart in CAD. The potential remains enormous. Source: Refinitiv Eikon from 13.06.2024

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Source: Power Nickel

ISIN: CA7393011092
Last price, Frankfurt, June 13, 2024 0.495 EUR
Number of shares 163.91 Mio.
Marketcap. 115.87 Mio. CAD
Industry, sector Raw materials, polymetals
Catalysts New discovery in polymetals, upward cycle in industrial metals
Flagship project NISK, Quebec (Canada)
CEO Terry Lynch
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André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

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