Power Nickel Announces Up to C$10 Million Upsize on Its Previously Announced Best Efforts Private Placement

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TORONTO, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Power Nickel Inc. (the "Company" or “Power Nickel”) (TSXV: PNPN) (OTCBB: PNPNF) (Frankfurt: IVV) is pleased to announce that due to significant demand, it has decided to upsize its previously announced “best efforts” private placement offering (the “Offering”) by up to C$10 million, bringing the aggregate total proceeds of the Offering up to C$50 million. The Offering consists of (i) the previously announced C$40 million of Quebec flow-through shares (the "FT Shares") and, (ii) up to C$10 million of non-flow through common shares (the "HD Shares" and together with the FT Shares, the "Offered Securities"). The price of the Offered Securities is C$2.83 for each FT Share and C$1.45 for each HD Share.

BMO Capital Markets and Hannam & Partners are acting as the joint bookrunners for the Offering, together with a syndicate of agents (the “Agents”).

Existing shareholders including Robert Friedland are participating in the upsize.

As previously announced, the gross proceeds received by the Company from the sale of the FT Shares will be used to incur expenses described in paragraph (f) of the definition of "Canadian exploration expense" ("CEE") in subsection 66.1(6) of the Income Tax Act (Canada) (the "Tax Act") and paragraph (c) of the definition of CEE in section 395 of the Taxation Act (Québec) (the "QTA"), and will be renounced in favour of the relevant purchasers by no later than December 31, 2025, pursuant to the terms of the subscription and renunciation agreement to be entered into between the Company and such purchasers of FT Shares. Such expenses will also qualify as "flow-through critical mineral mining expenditures" as defined in subsection 127(9) of the Tax Act for the purposes of the federal tax credit described in paragraph (a.21) of the definition of "investment tax credit" in subsection 127(9) of the Tax Act.

For purchasers of FT Shares resident in the Province of Québec, 10% of the amount of the CEE will be eligible for inclusion in the deductible "exploration base relating to certain Québec exploration expenses" and 10% of the amount of the CEE will be eligible for inclusion in the deductible "exploration base relating to certain Québec surface mining exploration expenses" (as such terms are defined in sections 726.4.10 and 726.4.17.2 of the QTA, respectively, for the purposes of the deductions described in section 726.4.9 and 726.4.17.1 of the QTA), giving rise to an additional 20% deduction for Québec tax purposes.