Power Metallic Mines Inc. (TSX-V: PNPN) (OTCBB: PNPNF) (Frankfurt: IVV1) is pleased to announce that it has closed its previously announced “best efforts” private placement offering for aggregate gross proceeds of C$49,999,800. Under the Offering the Company issued (i) 14,135,000 flow-through shares at a price of C$2.83 per FT Share, for gross proceeds of C$40,002,050, and (ii) 6,895,000 non-flow-through common shares at a price of C$1.45 per HD Share, for gross proceeds of C$9,997,750.

BMO Capital Markets and Hannam & Partners acted as co-lead agents and joint bookrunners for the Offering, for and on behalf of a syndicate of agents. In consideration for the services provided by the Agents under the Offering, the Company paid the Agents an aggregate cash commission of C$2,499,990 (which, for the avoidance of doubt, was paid from the gross proceeds in respect of the sale of HD Shares).

Terry Lynch, Chief Executive Officer of Power Metallic commented: “Raising the $50 Million will enable us to accelerate the pace of exploration dramatically. We just added a third drill rig testing the western flank of the Lion Zone while Rig 1 focuses on the Lion Zone and the second rig continues to explore the Tiger Zone 700 metres to the east of the Lion Zone. These are exciting times for our management team and our shareholders. We very much appreciate the faith shown by our newest investors and look forward to delivering even more impressive results in the weeks and months ahead.”

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” in subsection 66.1(6) of the Income Tax Act (Canada) and paragraph (c) of the definition of CEE in section 395 of the Taxation Act (Québec), 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 entered into between the Company and the 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.

In the event that the Company is unable to renounce CEE, effective on or prior to December 31, 2025, in favour of the purchasers of FT Shares in an aggregate amount not less than the gross proceeds raised from the issue of FT Shares, the Company will indemnify each purchaser of FT Shares for the additional taxes payable by such subscriber as a result of the Company’s failure to renounce the CEE as agreed.

The net proceeds received by the Company from the sale of HD Shares will be used for working capital and general corporate purposes.

The Offered Securities are subject to a statutory hold period until June 28, 2025. The Offering is subject to the final acceptance of the TSX Venture Exchange (the “TSX-V“).

The securities referred to in this press release have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Power Metallic Mines Inc.

Power Metallic is a Canadian exploration company focusing on developing the High-Grade Nickel Copper PGM, Gold and Silver Nisk project into potentially Canada’s next poly metallic mine.

On February 1, 2021, Power Metallic (then called Chilean Metals) completed the acquisition of its option to acquire up to 80% of the Nisk project from Critical Elements Lithium Corp.

The NISK property comprises a large land position (20 kilometres of strike length) with numerous high-grade intercepts. Power Metallic is focused on expanding the high-grade nickel-copper PGM, Gold and Silver mineralization with a series of drill programs designed to test the initial Nisk discovery zone, the Lion discovery zone and to explore the land package for adjacent potential poly metallic deposits.