Giga aims to raise $7.5 million for B.C. nickel

Giga aims to raise $7.5 million for B.C. nickel
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VANCOUVER – Giga Metals Corp. [GIGA-TSXV, HNCKF-OTCQX, BRR2-FSE] said Wednesday it is undertaking an overnight marketed public offering of common share units that is expected to generate up to $7.5 million for its flagship Turnagain nickel project in British Columbia.

Financing proceeds will be used to fund development and exploration expenses, including a pre-feasibility study, the company said in a press release.

It said the offering is expected to be completed pursuant to an underwriting agreement to be entered into between the company and an underwriting syndicate led by Cantor Fitzgerald Canada Corp.

The number of offered units to be sold, the offering price and the terms of the offered units will be determined in the course of marketing, and there can be no assurances that it will be completed. The underwriters are expected to be granted an option to purchase up to an additional 15% of the number of units sold in the offering for up to 30 days after the closing date.

On February 1, 2022, Giga Metals shares closed at 43 cents and currently trade in a 52-week range of 79 cents and 33 cents.

Giga’s flagship asset is its 100%-owned Turnagain project in north central B.C. The company says it ranks among the largest sulphide nickel deposits in the world, and could cost under $1 billion to develop (The estimate excludes the cost of hydro-electric power).

According to an estimate released in September 2019, the project contains a measured and indicated resource of 5.2 billion pounds of nickel and 312 million pounds of cobalt. On top of that is an inferred resource of 5.5 billion pounds of nickel and 327 million pounds of cobalt.

Nickel and cobalt are used in cathodes of two of the three dominant battery chemistries used in the production electric vehicles such as Chevy Bolt and Tesla. But Giga is hoping to gain a leg up on its competitors by developing a mine that is both carbon-neutral and capable of supplying ethically sourced nickel and cobalt in a politically stable jurisdiction.

The company said extensive metallurgical test work has shown that froth flotation can reliably create high-grade clean concentrate, a very desirable product that can be upgraded to high purity Class One nickel for use in lithium-ion batteries.

The cobalt produced is another critical element in battery production, adding to the long-term viability of the resource.

The Turnagain Project continues to be capable of producing 33,000 tonnes per year of nickel in concentrate for at least 35 years at a low greenhouse gas intensity with a life of mine operating cash cost of (site gate, net of cobalt credits) of US$2.81 per pound of nickel, according to an amended preliminary economic assessment dated November 20, 2020.


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