Nine Mile Metals Announces Completion of Private Placement Financing
Rhea-AI Summary
Nine Mile Metals has completed a private placement financing, raising $53,332 through the issuance of 1,066,640 units at $0.05 per unit. Each unit consists of one common share and half of a warrant, with each full warrant allowing purchase of one common share at $0.08 within 24 months. Charles MaLette, the Company's President, acquired 400,000 units. The proceeds will be used for operating expenses, including legal and audit fees and general working capital. All securities are subject to a four-month hold period.
Positive
- Secured $53,332 in new capital through private placement
- Company insider participation shows management confidence
Negative
- Small financing amount may indicate investor interest
- Dilutive effect on existing shareholders
- Low unit price of $0.05 suggests weak market conditions
News Market Reaction
On the day this news was published, VMSXF declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - November 15, 2024) - NINE MILE METALS LTD. (CSE: NINE) (OTC Pink: VMSXF) (FSE: KQ9) (the "Company" or "Nine Mile") is issuing the following press release to provide an update to its press release dated September 3, 2024, (click here) and to announce the closing of its private placement to raise
Each Unit is comprised of one common share (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"), with each Warrant entitling the holder thereof to acquire one Common Share in the capital of the Company at a price of
No commissions were paid in connection with this Private Placement.
The Company intends to use the proceeds for operating expenses, including legal and audit fees and general working capital.
The Common Shares, and any Common Shares to be issued on exercise of the Warrants, are subject to a hold period under applicable Canadian securities laws expiring four months and one day from the date of issuance of the Units.
Charles MaLette, the Company's President, Director and Corporate Secretary, acquired 400,000 Units in the Private Placement. Mr. MaLette purchased the units for investment purposes. The Private Placement and the acceptance of the subscription by Mr. MaLette was approved by unanimous resolution of the board of directors of the Company. There was no formal valuation of the Company done in connection with the Private Placement nor has there been such a formal valuation in the past 24 months. The Company relied upon the exemptions contained in Section 5.5(b) and 5.7(b) of Multilateral Instrument 61-101 ("MI 61-101") to avoid the formal valuation and shareholder approval requirements of MI 61-101. For the purposes of Section 5.5(b), the Company does not have any securities listed on any of the stock exchanges set out in Section 5.5(b) and for the purposes of Section 5.7(b) the exemption was available as the consideration paid for the Units subscribed for by Mr. MaLette was less than
About Nine Mile Metals Ltd.:
Nine Mile Metals Ltd. is a Canadian public mineral exploration Company focused on Critical Minerals VMS (Cu, Pb, Zn, Ag and Au) exploration in the renowned Bathurst Mining Camp (BMC), located in New Brunswick, Canada. The Company's primary business objective is to explore its four VMS Projects: Nine Mile Brook VMS Project, California Lake VMS Project, the Canoe Landing Lake (East - West) VMS Project, and the Wedge VMS Project. The Company is focused on Critical Minerals Exploration, positioning itself for the boom in EV and green technologies requiring Copper, Silver, Lead and Zinc with a hedge on Gold.
ON BEHALF OF NINE MILE METALS LTD.
"Patrick J. Cruickshank, MBA"
CEO and Director
T: 506-804-6117
E: patrick@ninemilemetals.com
Forward-Looking Information:
This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of Nine Mile. Forward-looking information is based on certain key expectations and assumptions made by the management of Nine Mile. In some cases, you can identify forward-looking statements by the use of words such as "will," "may," "would," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "could" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Forward-looking statements in this press release include that the Company will use the proceeds as described above. Although Nine Mile believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Nine Mile can give no assurance that they will prove to be correct.
The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230229
FAQ
How much did Nine Mile Metals (VMSXF) raise in its November 2024 private placement?
What are the terms of Nine Mile Metals (VMSXF) warrants from the November 2024 financing?
How many units did Nine Mile Metals (VMSXF) President Charles MaLette acquire in the private placement?
What is the hold period for Nine Mile Metals (VMSXF) securities from this private placement?
