Nine Mile Metals Closes Private Placement Financing

Rhea-AI Summary

Nine Mile Metals (CSE: NINE, OTC: VMSXF) has completed a non-brokered private placement raising $160,000 through the issuance of 4,571,429 flow-through units at $0.035 per unit. Each unit includes one flow-through common share and one warrant, allowing purchase of one common share at $0.05 for 5 years.

Finders and brokers received 320,000 warrants (exercisable at $0.035 for 5 years) and $11,200 in cash. The proceeds will fund work programs at the company's Wedge and California Lake properties, qualifying as Canadian Exploration Expenses for flow-through mining expenditures. The securities have a four-month and one-day hold period.

Positive

• Secured $160,000 in new funding through flow-through financing
• 5-year warrant terms provide long-term potential upside for investors
• Proceeds dedicated to exploration work at Wedge and California Lake properties

Negative

• Dilutive effect from issuance of 4,571,429 new units
• Low unit pricing at $0.035 indicates challenging market conditions
• Additional dilution from 320,000 broker warrants

Vancouver, British Columbia--(Newsfile Corp. - December 27, 2024) - NINE MILE METALS LTD. (CSE: NINE) (OTC Pink: VMSXF) (FSE: KQ9) (the "Company" or "Nine Mile") is pleased to announce that it completed a non-brokered private placement (the "FT Private Placement") for proceeds of $160,000 from the issuance of 4,571,429 units of flow-through (each, an "FT Unit") at a price of $0.035 per FT Unit.

Each FT Unit consists of one flow-through common share of the Company and one common share purchase warrant (each, an "FT Warrant"), with each FT Warrant entitling the holder thereof to purchase one common share at a price of $0.05 for a period of 5 years.

In consideration for their services in introducing subscribers to the Company under the FT Private Placement, finders and brokers received 320,000 common share purchase warrants, exercisable to purchase one common share at a price of $0.035 for a period of 5 years, and cash of $11,200.

The Company intends to use the net proceeds of the FT private placement to carry out the current and intended work programs on its Wedge and California Lake properties. This work will be eligible as "Canadian Exploration Expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada).

No Related Parties participated in and no new control persons were created by the Private Placement.

All securities issued in the Private Placement are subject to a four month and a day hold period.

About Nine Mile Metals Ltd.:

Nine Mile Metals Ltd. is a Canadian public mineral exploration Company focused on 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: info@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 release include that (a) the Company intends to use the net proceeds of the FT private placement to carry out the described work programs on its properties and (b) the work done will be eligible as "Canadian Exploration Expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada). 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/235300

FAQ

How much did Nine Mile Metals (VMSXF) raise in its December 2024 private placement?

Nine Mile Metals raised $160,000 through a non-brokered flow-through private placement in December 2024.

What are the terms of the VMSXF flow-through warrants issued in December 2024?

The warrants allow holders to purchase one common share at $0.05 per share for a period of 5 years.

How many flow-through units did VMSXF issue in the December 2024 financing?

Nine Mile Metals issued 4,571,429 flow-through units at $0.035 per unit.

What will Nine Mile Metals use the December 2024 financing proceeds for?

The proceeds will fund work programs on the company's Wedge and California Lake properties, qualifying as Canadian Exploration Expenses.

What compensation did finders receive in VMSXF's December 2024 private placement?

Finders received 320,000 warrants (exercisable at $0.035 for 5 years) and $11,200 in cash.