15:43:24 EDT Thu 23 May 2024
Enter Symbol
or Name
USA
CA



Fathom Nickel Inc
Symbol FNI
Shares Issued 102,775,797
Close 2023-12-21 C$ 0.12
Market Cap C$ 12,333,096
Recent Sedar Documents

Fathom Nickel closes $3.38M first financing tranche

2023-12-22 16:09 ET - News Release

Mr. Doug Porter reports

FATHOM NICKEL ANNOUNCES THE CLOSING OF THE FIRST TRANCHE OF PRIVATE PLACEMENT

Fathom Nickel Inc. has closed the first tranche of its non-brokered offering of flow-through units and non flow-though units (the "Offering"), previously announced on December 4, 2023. Pursuant to the Offering the Company issued 23,213,431 flow-through common units (the "FT Units") at a price per FT Unit of $0.13 (the "FT Price") for gross proceeds of $3,017,746, and 3,312,095 non-flow through Units (the "NFT Units") at a price per NFT Unit of $0.11 (the "NFT Price") for gross proceeds of $364,330. Combined gross proceeds of the Offering was $3,382,076. The second tranche of the Offering, expected to be a combination of approximately $1,200,000 charity flow-through units and NFT Units, is expected to close during the second week of January 2024.

Each NFT Unit consists of one Common Share (a "Hard Dollar Share") and one transferable Common Share purchase warrant (a "Warrant") that shall be exercisable into one Common Share ("Hard Dollar Warrant Share") for a period of 24 months from issuance at an exercise price of C$0.20.

Each FT Unit consists of one flow-through Common Share (a "FT Share") and one transferable Common Share purchase warrant (the "FT Unit Warrant"), that shall be exercisable into a Warrant Share for 24 months from issuance at an exercise price of C$0.20.

The combined 26,525,526 Hard Dollar and FT shares issued were issued in accordance with the accredited investor exemption under National Instrument 45-106 Prospectus Exemptions and are subject to a resale restriction of four months and one day from the date of distribution.

The gross proceeds of the flow-through portion of the Offering will be used by the Company to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" as such terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") related to the Company's Albert Lake Project and the Gochager Lake Project which are located in Saskatchewan, Canada on or before December 31, 2024. All Qualifying Expenditures will be renounced in favour of the subscribers effective December 31, 2023. The net proceeds of the Offering from the NFT Units will be used for exploration and development of the Company's mineral projects and for working capital and general corporate purposes.

As consideration for services in connection with the Offering, the Company has paid to certain qualified ("Finders") a cash commission of $225,108 and issued 1,571,879 broker warrants ("Broker Warrants"). Each Broker Warrant will entitle the holder thereof to acquire one common share of the Company at a price of $0.13 for a period of 24 months from the Closing Date.

"There were several US and international investors who expressed an interest to participate in the financing but had a preference for a closing in early 2024. As a result, we decided to close on the FT Units prior to December 31 in order to ensure the tax benefits accrued to participants for the 2023 tax year, but keep the NFT Units/Charity Units open into January to accommodate these additional investors. The second tranche of NFT Units/Charity Units is expected to close in mid-January," stated Doug Porter, President & CFO.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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+ hectare project that was host to the historic and past producing Rottenstone deposit (produced high-grade Ni-Cu+PGE, 1965-1969), and 2) the Gochager Lake Project, 22,000+ hectare project host to a historic, NI43-101 non-compliant open pit resource; the Gochager Lake deposit,( of 4.3M tons at 0.295% Ni and 0.081% Cu1, defined 1967-1970), an analogous drill tested nickel occurrence of drill intersections >1.% Ni (Mal Lake last drilled in 19672), and the Borys Lake Zn-Cu-Pb+Ag occurrence.

1 - The Saskatchewan Mineral Deposit Index (SMID#0880) reports drill indicated reserves at the historic Gochager Lake Deposit of 4,262,400 tons grading 0.295% Ni and 0.081% Cu mineable by open pit. Fathom cannot confirm the resource estimate nor the parameters and methods used to prepare the reserve estimate. The estimate is not considered NI43-101 compliant and further work is required to verify this historical drill indicated reserve.2 - Saskatchewan Mineral Deposit Index #0836

We seek Safe Harbor.

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