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Highlights
- First tranche of the non-brokered offering closed, raising total gross proceeds of $398,025.
- The Offering includes 8,550,000 flow-through units and 1,600,714 non-flow-through units.
- Gross proceeds from the flow-through portion will be used for eligible Canadian exploration expenses.
- Second tranche expected to close in mid-January 2025.
Fathom Nickel Inc. is pleased to announce the successful closing of the first tranche of its non-brokered offering of flow-through units ("FT Units") and non-flow-through units ("NFT Units"), previously announced on November 15, 2024. The Offering was conducted to support the Company’s ongoing exploration and development activities, with a focus on its mineral projects in Saskatchewan, Canada.
A total of 8,550,000 FT Units were issued at a price of $0.04 per FT Unit, generating gross proceeds of $342,000. In addition, 1,600,714 NFT Units were issued at a price of $0.035 per NFT Unit, raising an additional $56,025. The combined gross proceeds from the initial closing of the Offering total $398,025.
The second tranche of the Offering is anticipated to close in mid-January 2025.
Offering Details
Each NFT Unit consists of one common share of Fathom (a "Common Share") and one-half of a transferable Common Share purchase warrant (a "Warrant"). Each full Warrant entitles the holder to purchase one Common Share at an exercise price of C$0.07 for a period of 36 months from issuance.
Each FT Unit consists of one Common Share issued on a "flow-through" basis and one-half of a Warrant, which is identical in terms to the NFT Unit Warrants.
The FT and NFT Units issued under the Offering were issued under the Listed Issuer Financing Exemption set forth under Section 5A.2 of National Instrument 45-106 Prospectus Exemptions and contain no resale restrictions, providing flexibility for subscribers.
Use of Proceeds
The gross proceeds raised from the flow-through portion of the Offering will be used by Fathom to incur eligible Canadian exploration expenses that will qualify as flow-through mining expenditures as defined under the Income Tax Act (Canada). These expenditures will be related to the Company’s Albert Lake and Gochager Lake projects in Saskatchewan, with all qualifying expenditures to be renounced in favour of the subscribers by December 31, 2024.
The net proceeds raised from the sale of NFT Units will be allocated towards exploration and development activities on Fathom’s mineral projects and for working capital and general corporate purposes.
Finder’s Fees and Broker Warrants
As compensation for services in connection with the Offering, Fathom has paid qualified Finders a cash commission of $21,000 and issued a total of 525,000 broker warrants ("Broker Warrants"). Each Broker Warrant entitles the holder to acquire one Common Share at a price of $0.05 for a period of 36 months from issuance.
Commentary from Management
Doug Porter, President & CFO of Fathom Nickel, stated:
“We had a request to defer a part of the closing into fiscal 2025 from certain US-based investors and Finders. As a result, we decided to close on the FT Units prior to December 31, 2024 in order to ensure the tax benefits accrued to participants for the 2024 tax year but keep the NFT Units open into January 2025 to accommodate these additional investors. The second tranche of NFT is expected to close in mid-January."
