TSX-V-listed junior Palladium One on Monday announced that it would undertake a private placement offering to raise up to C$3.2-million for exploration activities on its palladium-dominant LK project in central Finland and its Tyko sulphide nickel project in Ontario.

The announcement comes as palladium reached a record price of $1 808/oz on Monday, owing to persistent supply deficits and as a direct consequence of higher demand from stricter auto emission standards and the migration away from diesel-powered vehicles.

Palladium One CEO Derrick Weyrauch said that the company was thus “well-positioned as a strategic metal provider for cleaner air”.

The non-brokered private placement offering will consist of up to 53 333 333 units at C$0.06 a unit, with an over-allotment allocation of up to 15% of the total offering.

Investor Eric Sprott is expected to participate in the offering in an amount equivalent to providing a 19.99%, nondiluted, ownership interest in the issued and outstanding common shares of Palladium One.

Assuming the offering is fully subscribed, and there is no over-allotment, Sprott’s subscription is expected to be C$1.09-million, or 18 197 000 units, representing about 34.1% of the offering.

Each unit will comprise one common share and one-half of one non-transferable, common share purchase warrant.

Weyrauch said in a statement that the proceeds would allow Palladium One to focus on increasing its existing palladium mineral resources at its LK project through new discoveries, and step-out and infill drilling, along the 38 km basal contact corridor.

“After closing the offering, our plan is to conduct high-resolution IP geophysics and then initiate a 5 000-m diamond drill program. IP has demonstrated the LK project’s Kaukua zone to correlate with base metal sulphides, and high PGE values and is, therefore, a preferred method to target higher-grade mineralisation. We intend to initiate these exploration activities as soon as practical and during the winter months. Planning is well under way.”