Fathom Nickel increases financing to $3.75-million

Executive Summary

• Fathom Nickel Inc. has upsized its previously announced best efforts non-brokered private placement to gross proceeds of up to $3.75 million, driven by strong demand.
• The company announced a planned 3,000 to 4,000-meter diamond drilling program at its Gochager Lake project, scheduled to commence in mid-to-late February 2026.
• The drilling program aims to test expanded geological footprints, high Ni-tenor outcrop areas, and significant soil geochemical anomalies using borehole electromagnetic (BHEM) surveys.

Key Details

• Financing Upsize:
  • Gross proceeds upsized to up to $3.75 million.
  • Offering structure consists of charity flow-through (FT) units at 4.8 cents per unit and hard-dollar (HD) units at 3.1 cents per unit.
  • Crescat Capital LLC has agreed to make a strategic investment for at least 10% of the upsized offering.
  • All other terms of the original offering remain unchanged.
• Drilling Program Specifications (Gochager Lake Project):
  • Total meterage: 3,000 to 4,000 meters of diamond drilling.
  • Number of holes: Minimum of 10 drill holes planned.
  • Start Date: Mid-to-late February 2026, contingent on winter trail completion (anticipated mid-February) and equipment arrival.
  • End Date: Drilling anticipated to continue into the first week of April 2026.
  • Methodology: All drill holes will be probed with borehole electromagnetic (BHEM) surveys to detect off-hole conductivity zones (up to 50 meters off-hole) indicative of magmatic high-grade Ni-Cu-Co sulphide mineralization.
• Target Areas and Exploration Thesis:
  • **Historic Deposit Extension: Testing areas along strike (northeast and southwest) of the historic Gochager Lake deposit where favorable geology, geochemistry, and geophysical signatures exist.
  • Ni-Tenor Vector: Drilling will target areas where outcrop samples exhibit Ni-tenor values between 4.23% and 4.79%, and areas where Ni-tenor exceeds 3%. Ni-tenor is defined as the weight percent nickel in 100% sulphide.
  • Specific Anomalies:
    • Multielement soil anomaly immediately south of Wolf Lake (1,500m x 500m).
    • Multielement soil anomaly on the north shore of Gochager Lake (1,650 ppm Ni, 116.5 ppm Cu, 373 ppm Co).
    • Multielement soil anomaly running into Weaver Lake.
  • Data Integration: Drill targeting utilizes existing Fathom BHEM, surface TDEM survey results, and historical 2008 VTEM survey results.
• QA/QC Methodology:
  • Use of portable Vanta XRF analyzer (pXRF) for real-time lithogeochemical data on surface rock chip and grab samples.
  • Reading protocol: 120 seconds total (Beam 1: 30s, Beam 2: 60s, Beam 3: 30s).
  • Elements recorded: Nickel, copper, cobalt, chrome, magnesium, and key pathfinder elements.

Notable Quotes

• "We are very much looking forward to the next phase of drilling at our Gochager Lake project. The surface work performed in 2024/2025 has significantly expanded the geological and geochemical footprint of the historic Gochager Lake deposit along strike northeast and southwest." — Ian Fraser, CEO and VP of Exploration.
• "Our exploration priority at Gochager was first to understand the geologic setting of the historic deposit and then work on building scale. The expanded geological footprint, specifically mineralized variable-texture gabbro occurring up to 3.5 kilometres northeast of the historic deposit, is very encouraging." — Ian Fraser.