14:17:59 EDT Thu 23 May 2024
Enter Symbol
or Name

Fathom Nickel Inc
Symbol FNI
Shares Issued 102,775,797
Close 2023-12-01 C$ 0.125
Market Cap C$ 12,846,975
Recent Sedar Documents

Fathom Nickel arranges $4.5-million private placement

2023-12-04 11:19 ET - News Release

Mr. Ian Fraser reports


Fathom Nickel Inc. has arranged a non-brokered private placement financing for aggregate gross proceeds of up to $4.5-million. The offering will consist of a combination of: (i) charity flow-through (FT) units at 17 cents per charity FT unit; (ii) flow-through units at 13 cents per FT unit; and (iii) hard dollar units at 11 cents per HD unit of the company.

Each charity FT unit shall consist of one charity flow-through common share and one transferable common share purchase warrant that shall be exercisable into one common share for a period of 24 months from issuance at an exercise price of 20 cents.

Each FT unit shall consist of one flow-through common share and one warrant, and each HD unit shall consist of one common share and one warrant.

The offering will be offered by way of a non-brokered private placement financing offering to accredited investors, or pursuant to the other available prospectus exemptions under National Instrument 45-106 -- Prospectus Exemptions in all provinces of Canada, except Quebec, and any other jurisdictions, subject to the receipt of necessary regulatory approvals.

The aggregate gross proceeds raised from the charity FT units and the FT units will be used before Dec. 31, 2024, for general exploration expenditures which will constitute Canadian exploration expenses (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)), that will qualify as flow-through critical mineral mining expenditures within the meaning of the tax act. The net proceeds of the offering from the HD units will be used for exploration and development of the company's mineral projects, and for working capital and general corporate purposes.

"The proceeds from this financing will allow Fathom to recommence field exploration programs at both the Gochager Lake project and the Albert Lake project in Q1 2024. The focus of the Gochager Lake project exploration program will be following up on the positive results from our recent drill program -- most notably the growing inventory of conductive targets at depth as well as the off-hole conductor associated with the zone of massive sulphides encountered in drill hole GL23008," stated Doug Porter, president and chief financial officer. "We are also very eager to drill test the 450-metre by 150 m conductor identified during our summer 2023 geophysical program at the Albert Lake property. This conductor occurs coincident with both a pronounced gravity anomaly as well as highly anomalous metals-in-soil samples in the area of the Tremblay-Olson/Nic5 area at the project. Q1 2024 will be an exciting time for FNI shareholders as we continue to advance our two highly prospective projects," he added.

It is expected that the company will pay finders a cash commission, on a yet to be determined percentage, based on the gross proceeds of the offering. In addition, the company may issue warrants to finders, subject to the number of HD units, charity FT units and FT units sold pursuant to the offering.

The sale of charity FT units, the HD units and FT units is expected to close on or about Dec. 18, 2023, or such other date as the company may determine.

The offering is subject to customary closing conditions, including the approval of the securities' regulatory authorities and the Canadian Securities Exchange.

About Fathom Nickel Inc.

Fathom is an exploration company that is targeting magmatic nickel sulphide discoveries to support the rapidly growing global electric vehicle market.

The company now has a portfolio of two high-quality exploration projects located in the prolific Trans Hudson corridor in Saskatchewan: (1) the Albert Lake project, a 90,000-plus-hectare project that was host to the historic and past-producing Rottenstone deposit (produced high-grade nickel/copper plus platinum group elements from 1965 to 1969); (2) the 22,000-plus-hectare Gochager Lake project, which is host to a historic, NI 43-101 non-compliant open-pit resource -- the Gochager Lake deposit (4.3 million tons at 0.295 per cent nickel and 0.081 per cent copper, defined 1967 to 1970) -- an analogous drill-tested nickel occurrence of drill intersections greater than 1 per cent nickel (Mal Lake last drilled in 1967); and (3) the Borys Lake zinc-copper-lead-plus-silver occurrence.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.