NexMetals Announces C$65 Million Public Offering of Units
Rhea-AI Summary
NexMetals (TSXV:NEXM, Nasdaq:NEXM) launched a "best efforts" public offering of up to 11,403,509 Units at C$5.70 per Unit for aggregate gross proceeds up to C$65 million, upsized from C$50 million due to strong demand. Each Unit includes one common share and one warrant exercisable at C$8.00 for 24 months. Net proceeds are earmarked to prepay a contingent milestone under the Asset Purchase Agreement for Selebi and Selkirk (planned before end of 2025), advance Botswana exploration and development, and for working capital. Closing expected on or about November 13, 2025.
Positive
- Offering upsized to C$65M from C$50M
- 11,403,509 Units priced at C$5.70 per Unit
- Proceeds allocated to prepay APA milestone before end-2025
Negative
- Warrants exercisable at C$8.00 for 24 months (potential dilution)
- Agents fee equal to 6% of gross proceeds (cash)
- Over-Allotment Option up to 15% increases potential issuance
News Market Reaction
On the day this news was published, NEXM declined 13.44%, reflecting a significant negative market reaction. Argus tracked a trough of -13.1% from its starting point during tracking. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $15M from the company's valuation, bringing the market cap to $97M at that time.
Data tracked by StockTitan Argus on the day of publication.
Upsized from
Vancouver, British Columbia--(Newsfile Corp. - October 28, 2025) - NexMetals Mining Corp. (TSXV: NEXM) (Nasdaq: NEXM) (the "Company" or "NEXM") is pleased to announce a "best efforts" public offering (the "Offering") pursuant to an agreement with certain agents as co-lead agents ("Co-Lead Agents"), on their own behalf and on behalf of a syndicate of one or more additional agents, of up to 11,403,509 units of the Company (the "Units" or "Offered Securities") at a price of C
Each Unit will consist of one common share of the Company (each, a "Common Share") and one common share purchase warrant of the Company (each, a "Warrant"). Each Warrant will entitle the holder to acquire one Common Share for a period expiring 24 months following the date of issuance at a price of C
The net proceeds from the Offering are expected to be used to fund the prepayment of the first contingent milestone payment under the Asset Purchase Agreement ("APA") for the Selebi and Selkirk mines, the timing of which is planned prior to the end of 2025, to advance exploration and development activities at the Company's mineral assets in Botswana, and for working capital and general corporate purposes.
The Offered Securities will be sold by way of a short-form prospectus in each of the provinces of Canada, except Quebec. The Units will also be offered (i) in the United States on a private placement basis pursuant to one or more exemptions from the registration requirements of the U.S. Securities Act, and (ii) in such other jurisdictions outside of Canada and the United States provided that a placement therein does not give rise to any prospectus, registration or continuous disclosure obligations on the part of the Company (collectively, the "Selling Jurisdictions").
The Company has granted to the Co-Lead Agents an option (the "Over-Allotment Option") to purchase up to that number of additional Offered Securities which equal to
In connection with the Offering, the Company has agreed to pay to the Agents a cash fee equal to
The Offering is expected to close on or about November 13, 2025 (the "Closing Date") and remains subject to the receipt of all necessary approvals.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any U.S. state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable U.S. state securities laws, or an exemption from such registration requirements is available.
About NexMetals Mining Corp.
NexMetals Mining Corp. is a mineral exploration and development company that is focused on the redevelopment of the previously producing copper, nickel and cobalt resources mines owned by the Company in the Republic of Botswana.
NexMetals is committed to governance through transparent accountability and open communication within our team and our stakeholders. NexMetals' team brings extensive experience across the full spectrum of mine discovery and development. Collectively, the team has contributed to dozens of projects, including work on the Company's Selebi and Selkirk mines. Senior team members each have on average, more than 20 years of experience spanning geology, engineering, operations, and project development.
For further information about NexMetals Mining Corp., please contact:
Morgan Lekstrom
CEO and Director
morganl@nexmetalsmining.com
Jaclyn Ruptash
V.P., Communications and Investor Relations
jaclyn@nexmetalsmining.com
18337704334
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Neither the TSX Venture Exchange and its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Nasdaq Stock Market LLC accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States federal securities laws and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking information") based on expectations, estimates and projections as at the date of this news release. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. For the purposes of this release, forward-looking information includes, but is not limited to, statements regarding closing of the Offering, the proceeds to be raised under the Offering and the intended use of net proceeds of the Offering. These forward-looking statements, by their nature, require the Company to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, the receipt of regulatory approvals for the Offering; changes in equity markets; inflation; fluctuations in commodity prices; the other risks involved in the mineral exploration and development industry; and those risks set out in the Company's filings with the U.S. Securities and Exchange Commission on EDGAR (www.sec.gov) and public disclosure record on SEDAR+ (www.sedarplus.com), in each case, under the Company's issuer profile. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/272223
FAQ
What is NexMetals (NEXM) offering size and price in the October 28, 2025 announcement?
What does each NexMetals Unit include and what are the warrant terms (NEXM)?
How will NexMetals (NEXM) use the net proceeds from the offering?
When is the NexMetals offering expected to close and is there an over-allotment option?
What fees will NexMetals pay the agents for the offering (NEXM)?
