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TORONTO, Feb. 27,
2025 /CNW/ - Power Metallic Mines Inc. (the "Company"
or "Power Metallic") (TSXV: PNPN) (OTCBB: PNPNF) (Frankfurt: IVV1)
is pleased to announce that it has closed its previously announced
"best efforts" private placement offering (the "Offering") for
aggregate gross proceeds of C$49,999,800. Under the Offering the Company
issued (i) 14,135,000 flow-through shares (the "FT Shares") at a
price of C$2.83 per FT Share, for
gross proceeds of C$40,002,050, and
(ii) 6,895,000 non-flow-through common shares (the "HD Shares" and
together with the FT Shares, the "Offered Securities") at a price
of C$1.45 per HD Share, for gross
proceeds of C$9,997,750.
BMO Capital Markets and Hannam & Partners acted as co-lead
agents and joint bookrunners for the Offering, for and on behalf of
a syndicate of agents (the "Agents"). In consideration for the
services provided by the Agents under the Offering, the Company
paid the Agents an aggregate cash commission of C$2,499,990 (which, for the avoidance of doubt,
was paid from the gross proceeds in respect of the sale of HD
Shares).
Terry Lynch, Chief Executive
Officer of Power Metallic commented: "Raising the $50 Million will enable us to accelerate the pace
of exploration dramatically. We just added a third drill rig
testing the western flank of the Lion Zone while Rig 1 focuses on
the Lion Zone and the second rig continues to explore the Tiger
Zone 700 metres to the east of the Lion Zone. These are exciting
times for our management team and our shareholders. We very much
appreciate the faith shown by our newest investors and look forward
to delivering even more impressive results in the weeks and months
ahead."
The gross proceeds received by the Company from the sale of the
FT Shares will be used to incur expenses described in paragraph (f)
of the definition of "Canadian exploration expense" ("CEE") in
subsection 66.1(6) of the Income Tax Act (Canada) (the "Tax Act") and paragraph (c) of
the definition of CEE in section 395 of the Taxation Act
(Québec) (the "QTA"), and will be renounced in favour of the
relevant purchasers by no later than December 31, 2025, pursuant to
the terms of the subscription and renunciation agreement entered
into between the Company and the purchasers of FT Shares. Such
expenses will also qualify as "flow-through critical mineral mining
expenditures" as defined in subsection 127(9) of the Tax Act for
the purposes of the federal tax credit described in paragraph
(a.21) of the definition of "investment tax credit" in subsection
127(9) of the Tax Act.
For purchasers of FT Shares resident in the Province of Québec,
10% of the amount of the CEE will be eligible for inclusion in the
deductible "exploration base relating to certain Québec exploration
expenses" and 10% of the amount of the CEE will be eligible for
inclusion in the deductible "exploration base relating to certain
Québec surface mining exploration expenses" (as such terms are
defined in sections 726.4.10 and 726.4.17.2 of the QTA,
respectively, for the purposes of the deductions described in
section 726.4.9 and 726.4.17.1 of the QTA), giving rise to an
additional 20% deduction for Québec tax purposes.
In the event that the Company is unable to renounce CEE,
effective on or prior to December 31,
2025, in favour of the purchasers of FT Shares in an
aggregate amount not less than the gross proceeds raised from the
issue of FT Shares, the Company will indemnify each purchaser of FT
Shares for the additional taxes payable by such subscriber as a
result of the Company's failure to renounce the CEE as agreed.
The net proceeds received by the Company from the sale of HD
Shares will be used for working capital and general corporate
purposes.
The Offered Securities are subject to a statutory hold period
until June 28, 2025. The Offering is
subject to the final acceptance of the TSX Venture Exchange (the
"TSXV").
The securities referred to in this press release have not been
registered under the U.S. Securities Act of 1933, as amended, and
may not be offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any State in which
such offer, solicitation or sale would be unlawful.
About Power Metallic Mines Inc.
Power Metallic is a Canadian exploration company focusing on
developing the High-Grade Nickel Copper PGM, Gold and Silver Nisk
project into potentially Canada's
next poly metallic mine.
On February 1, 2021, Power
Metallic (then called Chilean Metals) completed the acquisition of
its option to acquire up to 80% of the Nisk project from Critical
Elements Lithium Corp.
The NISK property comprises a large land position (20 kilometres
of strike length) with numerous high-grade intercepts. Power
Metallic 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.
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. Forward-looking statements include, but
are not limited to: the use of proceeds from the Offering; the tax
treatment of the FT Shares; the Company's ability to incur
qualifying exploration expenditures; and the receipt of final
acceptance of the Offering from the TSXV. 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 for various drilling plans; the ability
and timing 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 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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Power Metallic Mines Inc.
