Nine Mile Metals Announces Private Placement

Rhea-AI Summary

Nine Mile Metals (CSE: NINE, OTC: VMSXF) has announced a private placement of up to 18,507,143 units at $0.021 per unit. Each unit consists of one common share and one purchase warrant, allowing holders to acquire one common share at $0.05 for 5 years from issuance.

The placement includes up to 7,500,000 units for cash proceeds of up to $157,500, intended for operating expenses and working capital. Finders may receive 7% cash commission and 7% share purchase warrants. Additionally, 11,007,143 units will be issued to settle Convertible Loans due December 14, 2024, and interest, totaling $231,150.

The issued shares will have a four-month-and-one-day hold period, and the placement won't create new insiders or control persons. No funds will be used for management fees.

Positive

• Settlement of $231,150 in convertible loans through unit issuance
• Raising up to $157,500 in fresh capital for operations

Negative

• Significant dilution through issuance of up to 18.5M new units
• Low unit pricing at $0.021 indicates weak market position
• Need for immediate capital for basic operating expenses suggests financial strain

Vancouver, British Columbia--(Newsfile Corp. - January 21, 2025) - NINE MILE METALS LTD. (CSE: NINE) (OTC Pink: VMSXF) (FSE: KQ9) (the "Company" or "Nine Mile") announces its intention to complete a private placement of up to 18,507,143 units (each a "Unit") at a price of $0.021 per Unit. Each Unit will be comprised of one common share (a "Common Share") and one 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 $0.05 per Common Share for a period of 5 years from the date of issuance (the "Private Placement").

Up to 7,500,000 of the Units may be sold for cash proceeds of up to $157,500. The Company intends to use the cash proceeds for operating expenses, including legal and audit fees and general working capital. As per the CSE policies, none of the funds raised in the Private Placement will be used for management fees current or owed.

In consideration for their services in introducing subscribers to the Company under cash portion of the Private Placement, finders may receive commission of 7% cash and 7% common share purchase warrants, exercisable to purchase one common share at a price of $0.05 for a period of 5 years.

The Company also intends to issue 11,007,143 Units for the settlement of Convertible Loans that were due on December 14, 2024, and applicable interest thereon, for a combined total of principal and accrued interest of $231,150.

The issuance of Common Shares will not result in a new insider or control person. 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.

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.

"Charles MaLette"
President and Director
T: 604-428-5171
E: bud@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 a) the Company will complete a Private Placement of up to 18,507,143, allocated as described above (b) finders will receive the commission as described above, and (c) the Company will use the case 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/237938

FAQ

What are the terms of Nine Mile Metals' (VMSXF) January 2025 private placement?

The private placement offers up to 18,507,143 units at $0.021 per unit, with each unit containing one common share and one warrant exercisable at $0.05 for 5 years.

How much capital is Nine Mile Metals (VMSXF) raising in cash through the January 2025 placement?

Nine Mile Metals is raising up to $157,500 through the sale of up to 7,500,000 units.

What is the warrant exercise price and duration for VMSXF's January 2025 private placement?

The warrants have an exercise price of $0.05 per common share and are valid for 5 years from the date of issuance.

How much debt is Nine Mile Metals (VMSXF) converting through the January 2025 private placement?

Nine Mile Metals is converting $231,150 in Convertible Loans and interest through the issuance of 11,007,143 units.

What are the finder's fees for VMSXF's January 2025 private placement?

Finders may receive a 7% cash commission and 7% common share purchase warrants, exercisable at $0.05 for 5 years.