First Atlantic Raises C$6.1575 Million to Boost Exploration at Pipestone XL Nickel-Cobalt Project

en.Wedoany.com Reported - On September 18, First Atlantic Nickel & Cobalt announced the completion of a non-brokered private placement, raising a total of C$6.1575 million through the issuance of 8.21 million flow-through shares at C$0.75 per share, with no warrants attached to this financing. The company plans to use the proceeds for exploration expenditures at the Pipestone XL nickel-cobalt alloy project and the Ophiolite X project in Newfoundland and Labrador, Canada.

Under the financing arrangement, the company will complete qualifying exploration expenditures in accordance with Canada's Income Tax Act by December 31, 2027, and will transfer the related tax deduction rights to subscribers by December 31, 2026. The securities issued are subject to a statutory hold period of four months and one day, expiring on January 19, 2027, and the transaction remains subject to final approval by the TSX Venture Exchange.

Pipestone XL is wholly owned by First Atlantic and covers approximately 30 kilometers of the Pipestone ophiolite belt in central Newfoundland, where multiple natural nickel-iron-cobalt alloy mineralization zones have been identified, including RPM, Alloy Max, Super Gulp, Atlantic Lake, and Chrome Pond. The company will focus this round of funding on step-out and infill drilling along the approximately 30-kilometer mineralized strike, including the South and North zones of Alloy Max, the RPM zone, and peripheral targets that were previously accessible only by helicopter.

RPM is currently the most advanced mineralization zone at the project, with drilling having delineated magnetic nickel-iron alloy mineralization over a strike length of more than 1.2 kilometers and a width of more than 800 meters. Alloy Max is the second large mineralization zone, with a target strike of approximately 4 kilometers and a width of up to approximately 1.5 kilometers. Dimension Network reported in July that drill hole XL-26-16 at Alloy Max intersected 525 meters of continuous natural nickel-iron-cobalt alloy mineralization. This financing represents a new capital investment milestone, with funds to continue supporting subsequent drilling in this zone. Dimension Network is used solely as an internal duplication-check reference.

In addition to drilling, the proceeds will also be used for metallurgical recovery and beneficiation testing of mineralization samples from Alloy Max and RPM, as well as upgrades to project roads and access routes. The company plans to improve year-round drilling conditions through road improvements and to enable mechanical equipment access to exploration targets that were previously inaccessible by ground.

First Atlantic's previous ONSHORE MAX magnetic separation-flotation tests on RPM mineralization showed that run-of-mine ore can be upgraded to an alloy concentrate with an average nickel grade of 67.4%, with a maximum nickel grade of 71.9% and up to 1.76% cobalt. The primary mineral contained in the project is the natural nickel-iron-cobalt alloy awaruite (Ni₃Fe), and the company is continuing to advance resource evaluation and metallurgical process verification for the related mineralization.