Premium Nickel upsizes Botswana financing to $20 million

The Selebi North headframe. Credit: Premium Nickel Resources

Premium Nickel Resources (TSXV: PNRL) has upsized its non-brokered equity financing to C$27.5 million ($20m) to be spent at its projects in Botswana. The financing was originally announced on June 5 for C$15 million ($10.9m).

The company said the upsizing was due primarily to strong interest from existing shareholders. The original offering included the private placement of approximately 19.2 million units, but the upsized offering includes about 35.3 million units.

Each unit was priced at C$0.78 and consisted of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share for C$1.10 for a period of 60 months.

Premium Nickel has two fully permitted nickel-copper-cobalt mine redevelopment projects – the Selebi mine formerly owned by BCL and Tati’s former Selkirk mine – in the African nation.

The Selebi mine opened in 1980 and operated for 36 years producing nickel and copper until it was put on care and maintenance in 2016. The mine has two shafts – the 1,140-metre Selebi shaft and the 970-metre Selebi North. The Selebi north shaft was in production from 1990 to 2016, also producing nickel and copper.

Production began at the Selkirk nickel-copper mine in 1989 and lasted until 2002. The historic resource estimate is 165.3 million tonnes grading 0.28% nickel and 0.24% copper, using a cut-off grade of 0.15% nickel.


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