Canadian exploration and development company Palladium One on Thursday announced a C$4.25-million private placement financing with a subsidiary of commodities major Glencore.
Pursuant to the placement, Palladium would issue 28.35-million shares at C$0.15 each.
Upon completion, Glencore would own about 9.99% of the issued and outstanding common shares on a non-diluted basis.
"We welcome Glencore as a shareholder and are pleased that our efforts to build a portfolio of nickel/copper sulphide projects in Tier 1 jurisdictions has been recognised and endorsed by an industry leader. We believe this transaction highlights the deep discount to fundamental value and strategy that PDM's shares represent,” commented CEO Derrick Weyrauch.
Palladium One’s shares traded at C$0.095 a share on Thursday morning.
Net proceeds of the private placement would be used for exploration and development activities at the company's nickel projects, for future exploration and development activities, working capital and general and administrative expenses.
The private placement would close on, or about April 11.
Palladium One is targeting district scale, platinum group element (PGE)/copper/nickel deposits in Canada and Finland. The Läntinen Koillismaa (LK) project in north-central Finland, is a PGE/copper/nickel project that has existing National Instrument 43-101 mineral resources, while both the Tyko and Canalask high-grade nickel/copper projects are located in Ontario and the Yukon, Canada, respectively.