07:08 AM EDT, 06/24/2024 (MT Newswires) -- Power Nickel (PNPN.V) on Monday said it closed an over-subscribed flow-through offering, raising about $20.1 million after issuing roughly 16 million units at $1.25 apiece.

Each flow-through unit is composed of one flow-through common share and one-half of one share purchase warrant exercisable to purchase one common share at $1.25 per share for three years from the date of issuance.

Investors Robert Friedland and Rob McEwen joined other mining investors, including CVMR and Terra Capital, to provide the buyback of the flow-through units financing for Power Nickel.

"With this capital, we will be able to substantially increase our already very successful exploration efforts," said Power Nickel CEO Terry Lynch.

Proceeds from the sale of the flow-through units will be used for exploration activities on the company's Nisk property in Quebec and to incur eligible "Canadian exploration expenses" that will qualify for the federal 30% critical mineral exploration tax credit.

Power Nickel jumped more than 30% to a 52-week high of $0.88 per share on Friday.