Jim's Mining Letter - June 24, 2024

Power Nickel (PNPN.V PNPNF IVV.F) announced that it has closed an over-subscribed flow-through offering for gross proceeds of C$20,062,497.50 through the issuance of 16,049,998 flow-through units at a price of C$1.25 per unit. Each unit is comprised of one flow-through share and one-half of one share purchase warrant, with each warrant exercisable to purchase one share at a price of C$1.25 for three years from the date of issuance. Each flow-through share will qualify as a flow-through share for purposes of the Income Tax Act. Robert Friedland and Rob McEwen joined with several other leading mining investors, including CVMR and Terra Capital, to provide the investor buyback. Back-end purchasers acquired the underlying common shares and warrants from the front-end buyers of the flow-through units at C$0.66 per common share and half-warrant combined. Power Nickel is focused on developing the high-grade nickel, copper, platinum group metals, gold and silver Nisk project into Canada's next poly metallic mine. Nisk is said to have exceptional exploration upside and with this capital the company will be able to substantially increase what are described as its already very successful exploration efforts. One drilling rig is currently targeting the extension of the Lion Zone and soon the company will have a second rig advancing the exploration program. In 2021, the company completed the acquisition of its option to acquire up to 80% of the Nisk project from Critical Elements Lithium (CRE.V CRECF F12.F). In addition to the Nisk project, Power Nickel owns land packages in British Colombia and Chile, and is expected to reorganize these assets in a related public vehicle…more

Cascadia Minerals (CAM.V CAMNF) announced that it has closed its non-brokered private placement for total proceeds of C$3,236,750. Michael Gentile, a strategic investor in the junior mining sector and early backer of Cascadia, led the financing and increased his position to 9.99% on a partially diluted basis. The placement consisted of an aggregate of 4,550,000 charity flow-through units for general critical minerals exploration at a price of C$0.42 per CFT unit, 2,150,000 charity flow-through units for critical minerals exploration in British Columbia at a price of C$0.475 per BC CFT unit, and 725,000 traditional flow-through common shares at a price of C$0.42. Funds are now in hand to commence the expanded second phase of exploration this season. The first phase of drilling recently wrapped up at the Catch Property in Yukon, with 1,600 m of step-out drilling completed ahead of schedule and under budget. Diamond drilling is planned to commence at the PIL Property in BC’s Toodoggone region in the second week of July, testing what is said to be a compelling road-accessible copper-gold target. Phase two drilling at Catch is planned to commence in late July, with additional IP geophysical surveys to be conducted in August. Each CFT unit and BC CFT unit comprises one common share and one-half of one common share purchase warrant exercisable at C$0.45.

Alkane Resources (ALK.ASX ALKEF AK7.F) announced plans for the next five years at its Tomingley gold operations in the central west of New South Wales. These show Tomingley increasing production above 100,000 ounces of gold per annum, with strong resultant cash flow. The underground at Roswell has already begun production and is expect to produce over 70,000 ounces of gold next year. The paste plant and the flotation / regrind circuit are under construction with commissioning expected later this year. The deposits across Tomingley are open at depth and along strike and known resources extend beyond this immediate five-year plan. Planned production is 455,000 to 505,000 ounces of gold over the next five financial years, sourced from underground and open cut mining. AISC over the five-year period is expected to average A$1,900/oz to A$2,100/oz with costs to reduce over time as the development capital requirement decreases.

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