Power Nickel Inc. (TSXV: PNPN) (OTCQB: PNPNF) (Frankfurt: IVV) ("Power Nickel" or the "Company") is pleased to announce the continuation of its agreement with CVMR Corporation ("CVMR"), one of the world's leaders in Nickel Powder, Wire, and Anode production, and a key supplier to the Battery, Defence, and Aerospace industry. CVMR is coordinating the production of advanced bench scale, piloting, and engineering studies on the Nisk Nickel Sulfide Project near Nemaska, Quebec to determine project feasibility. The agreement is staged, allowing for Power Nickel and CVMR to work together on various stages of engineering studies.

CVMR is a privately held metal refining technology provider that is also engaged in mining and refining of its own mineral resources in 18 different countries. The company was established in 1986, with its head office and R & D Centre in Toronto, Canada.

To ensure this process was done in the least dilutive way possible, Power Nickel has arranged to have WCPD Group organize a consortium of Quebec-based investors who will make an initial investment of $2.75 million representing 3,055,556 Flow-Through ("FT") shares at $0.90 per share. Wealth (WCPD Inc.) is one of the leading exempt market dealers offering efficient financing for Canadian resource and mineral exploration. As part of the process, CVMR will acquire these shares from the front-end purchasers for $0.45 per share.

Each FT share will be composed of one common share of the Company that qualifies as a "flow-through share" (each, an "FT share") for purposes of the Income Tax Act (Canada) (the "ITA"). All securities issued under the Private Placement will be subject to a four-month and one-day statutory hold period. The Company intends to use the gross proceeds from the sale of the FT shares for exploration activities on the Company's NISK property located in Quebec and to incur eligible Canadian exploration expenses, within the meaning of the ITA, that will qualify for the federal 30% Critical Mineral Exploration Tax Credit. The Company expects to close the deal by the end of November. The Private Placement is subject to TSX Venture Exchange ("TSXV") approval.

"CVMR has enjoyed technical success in its benchmark studies to date, and after reviewing the preliminary reports, we are very encouraged with how well the mineralization is being processed. We look forward to reviewing the final benchmarking report soon and to our ongoing collaboration with CVMR," commented Power Nickel CEO Terry Lynch.

"We are very encouraged with the ongoing drilling and exploration success at Nisk. We believe the upcoming NI 43-101 report will likely suggest a commercial tonnage of Nickel can be obtained, along with Copper, Cobalt, Palladium, and Platinum. Our benchmarking tests have gone very well, and we believe the mineralization can be processed in the CVMR system in a manner that will provide very favorable yields. We are excited to deliver the final benchmarking studies shortly and look forward to conducting the prototype trial runs which will provide us further insight and confidence in the commercial viability of Nisk," commented CVMR CEO Kamran M. Khozan.

Further to the Company's announcement made on August 15th, Power Nickel will make the next payment of $2,250,000 to CVMR to complete the next stage of the feasibility study.

"At this time, the economics of using the CVMR process look even more compelling. Typically, a Nickel miner will make a concentrate to sell to the refiners and leave at least 25% of their Nickel unrecovered, with much of the metal byproducts unrecovered or minimally recovered. Through the CVMR process to date, we have seen excellent recoveries in the Nickel and in the metal byproducts. While the benchmarking studies will provide the first formal science on the recoveries, both CVMR and our team are excited enough to greenlight this next stage. Not only will we recover a lot more metals from the mineralization we process via the CVMR system, by delivering finished products like powders, nano powders, wire, anodes and EV precursors, we believe we will be able to earn two to three times the revenue with minimal incremental cost," commented Power Nickel CEO Terry Lynch.

Qualified Person
Kenneth Williamson, Géo, M.Sc., VP Exploration at Power Nickel, is the qualified person who has reviewed and approved the technical disclosure contained in this news release.

 

Source:prnewswire.com

Report Abuse