Fathom Nickel closes first tranche of private placement for C$3.2M

Fathom Nickel Inc. (CSE: FNI) (FSE: 6Q5) (OTCQB: FNICF) completed the first tranche of its private placement, raising gross proceeds of C$3,225,900, according to a company statement.

The Calgary-based exploration company issued 52,083,334 charity flow-through units at C$0.048 each for C$2,500,000 and 23,416,129 non-flow-through units at C$0.031 each for C$725,900. The second tranche, comprising an additional C$774,000 in non-flow-through units, is expected to close around February 24.

Each non-flow-through unit includes one common share and one warrant exercisable at C$0.05 for 36 months. The charity flow-through units consist of one flow-through share and one warrant, also exercisable at C$0.05 for 36 months.

The flow-through shares qualify as "flow-through shares" under Canada's Income Tax Act and as "eligible flow-through shares" under Saskatchewan's Mineral Exploration Tax Credit Regulations. All units were issued under the accredited investor exemption and are subject to a four-month-plus-one-day resale restriction.

Proceeds from the charity flow-through units will fund Canadian exploration expenses that qualify as "flow-through critical mineral mining expenditures" at the company's Gochager Lake Project in Saskatchewan. These expenditures must be incurred by December 31, 2027, and will be renounced to subscribers effective December 31, 2026.

Net proceeds from the non-flow-through units will support exploration and development of the company's mineral projects, working capital and general corporate purposes.

The company paid C$43,310 in cash commissions and issued 2,945,440 broker warrants to finders. Each broker warrant allows the purchase of one common share at C$0.05 for 24 months.

Fathom Nickel focuses on magmatic nickel sulphide exploration across three projects in Saskatchewan's Trans Hudson Corridor, including the Albert Lake Project, Gochager Lake Project, and Friesen Lake Project.

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