Although 2022 was a challenging year for the Canadian junior mining sector, we believe certain operators are better positioned for growth this year. We consider the combination of the better positioning and the more attractive valuations to be a recipe for success.
As a result, we plan to publish a series of 3 articles which highlight Canadian junior miners that we consider to be undervalued and flying under the radar.
The first company we want to highlight is Power Nickel Inc. (TSX Venture: PNPN) (OTCQB: CMETF) (Frankfurt: IVVI) which announced initial results from its “Nisk” drill program in late November. The initial results confirmed the presence of high-grade Ni-Cu-Co-PGE mineralization in the Nisk Main zone and showed that the mineralization extends by an additional 150 meters.
We consider these data points to be significant for Power Nickel and believe the market does not appreciate the importance of the initial results. One of our takeaways from the announcement is that the holes that were drilled were in an area where no resource was modeled. As a result, the data will help the management team better assess its deposit and add substantial tonnage to its model.
On top of the initial data report, Power Nickel’s management team has purchased a substantial amount of stock from a recent financing and we consider this to be extremely significant. By increasing the size of their ownership positions in Power Nickel, the management team has put additional skin in the game and we believe this is one of the most important themes for our thesis on the business.
Considering the initial results, we believe the Power Nickel story is de-risked and that the probability of the company becoming Canada’s next major nickel mine is much more likely. In the first quarter of 2023, Power Nickel plans to extend drilling by another 7,500 to 10,000 meters. The company’s rationale to extend drilling was based on receiving such positive initial results and we are excited about the opportunity.
Over the next few months, we expect Power Nickel to announce a series of major developments and believe the story is flying under the radar. We categorize Power Nickel as a company which has major potential catalysts for growth and want our readers to be aware of the story.
At current levels, we find Power Nickel’s valuation to be very attractive and believe the initial data improves its risk-reward profile. When compared with other high-grade nickel sulfide exploration projects around the world, Power Nickel’s Nisk project trades at a fraction of other projects’ value.
If you are interested in learning more about Power Nickel, please send an email to support@onthebids.com with the subject “Power Nickel” to be added to our distribution list.
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Any Content posted regarding a Profiled Issuer is not a solicitation or recommendation to buy, sell or hold securities. We cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. All information should be independently verified. We are not responsible for errors or omissions in our publications, and any opinions expressed are subject to change, without notice. We do not, nor are we under any obligation to undertake due diligence or investigation or authenticate and verify whatsoever regarding Profiled Issuers or any Content posted in relation thereto and we do not receive any verification from the Profiled Issuer regarding the Content we disseminate. Similarly, while we endeavor to facilitate the provision of quality information, we are not responsible for any loss or damages caused or alleged to have been caused by its use nor verify or authenticate or update such information.
Pursuant to an agreement between Spotlight Media and Power Nickel we have been hired for a period of 180 days beginning November 1, 2022 and ending May 1, 2023 to publicly disseminate information about Power Nickel including on the Website and other media including Facebook and Twitter. We are being paid $3,000 per month by Power Nickel and were paid “ZERO” shares of unrestricted or restricted common shares. We plan to sell the “ZERO” shares of Power Nickel that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of Power Nickel in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information
This article contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs regarding future performance are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “expects”, “does not expect”, “is expected”, “believes”, “intends”, “anticipates”, “does not anticipate”, “believes” or variations of these words, expressions or statements, that certain actions, events or results “may”, “could”, “would”, “might” or “will be” taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, dependence on obtaining and maintaining regulatory approvals, including the acquisition and renewal of federal, provincial, state, municipal, local or other licenses, and any inability to obtain all necessary government authorizations, licenses and permits to operate and expand the Company’s facilities; regulatory or policy changes such as changes in applicable laws and regulations, including federal, state and provincial legalization, due to fluctuations in public opinion, industry perception of integrative mental health, including the use of psychedelic-assisted therapy, delays or inefficiencies or any other reason; any other factor or development likely to hamper the growth of the market; the Company’s limited operating and profitability track record; dependence on management; the Company’s need for additional financing and the effects of financial market conditions and other factors on the availability of capital; competition, including that of more established and better funded competitors; the impact of the Russia-Ukraine conflict on the global economy; the continued impact of the COVID-19 pandemic; and the need to build and maintain alliances and partnerships, including with research and development companies, customers and suppliers. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. Despite the Company’s efforts to identify the main risk factors that could cause actual measures, events or results to differ materially from those described in forward-looking statements, other risk factors may cause measures, events or developments to materially differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company does not undertake to revise forward-looking statements, even if new information becomes available as a result of future events, new facts or any other reason, except as required by applicable laws.
