Power Metallic Mines closes C$28.2M private placement with Sprott lead order

Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) has closed a best-efforts private placement raising just over C$28.2 million, including a lead order from mining investor Eric Sprott.

The Vancouver-based company sold 22,583,000 common shares at C$1.25 per share. Sprott, through his holding company 2176423 Ontario Ltd, acquired 1.6 million shares for C$2 million.

Red Cloud Securities acted as lead agent and sole bookrunner, alongside a syndicate that included Titan Partners Group LLC, Roth Canada and Taylor Collison Limited.

Power Metallic said it intends to use the net proceeds to advance its flagship Nisk project in Quebec and its Jabul Baudan exploration license in Saudi Arabia, as well as for general working capital and corporate purposes.

Shares of Power Metallic were up nearly 6% on Wednesday morning.