Fathom Nickel Inc. (CSE: FNI) intends to complete a best efforts non-brokered private placement financing for aggregate gross proceeds of up to C$2,000,000.
Crescat Capital LLC has agreed to make a strategic investment for up to 25% of the Offering.
“High-grade nickel sulphide discoveries have been exceedingly scarce in North American lately,” Geologic and Technical Director of Crescat, Dr Quinton Hennigh, said.
“Fathom’s recent high-grade drill intercepts at Gochager Lake might prove to break this drought. The 18.1m intercept of 2.43% Ni, 0.51% Cu and 0.18% Co within 58.2m of 1.49% Ni, 0.38% cu and 0.11% Co in hole GL23003 resembles grades and widths of drill intercepts encountered at the Nova-Bollinger discovery in Western Australia a few years ago. An off-hole EM anomaly seen outboard from this remarkable intercept appears to be exceptionally strong suggesting the potential presence of a major sulphide body nearby. We are very anxious to see Fathom undertake follow up drilling of this anomaly as soon as possible.”
Crescat is expected to own or control approximately 19% of the common shares of Fathom on a partially diluted basis upon completion of the Offering, assuming the Offering is completed in full.
The aggregate gross proceeds raised will be used before December 31, 2024 for general exploration expenditures which will constitute Canadian exploration expenses (within the Income Tax Act (Canada), that will qualify as “flow through critical mineral mining expenditures” within the meaning of the Tax Act (the “Qualifying Expenditures”). The net proceeds of the Offering from the HD Units will be used for exploration and development of the company’s mineral projects and for working capital and general corporate purposes.
“The proceeds from this financing will put Fathom in a great position to commence a field exploration program at the Gochager Lake Project in June, with a focus of following-up on the very impressive results from our recent drill programme”, stated Doug Porter, President and CFO.
“We are particularly pleased that Crescat has agreed to participate in the Offering in such a significant manner. Crescat has been a fantastic supporter of Fathom since their initial investment in our IPO financing.
“Additionally, the experience and technical insights of Dr. Hennigh have proven invaluable to Ian and our geological team. We look forward to continuing to strengthen our relationship with Crescat as we advance exploration at our Gochager Lake and Albert Lake projects.”
About Crescat Capital LLC
Crescat is a global macro asset management firm headquartered in Denver, Colorado. Crescat’s mission is to grow and protect wealth over the long term by deploying tactical investment themes based on proprietary, value-driven equity and macro models. Crescat’s goal is industry-leading absolute and risk-adjusted returns over complete business cycles with low correlation to common benchmarks. The company’s investment process involves a mix of asset classes and strategies to assist with each client’s unique needs and objectives and includes Global Macro, Long/Short, Large Cap and Precious Metals Funds.
For further information please visit: https://fathomnickel.com/
