Nine Mile Metals Amends Private Placement Financing

Rhea-AI Summary

Nine Mile Metals (CSE: NINE, OTCQB: VMSXF, FSE: KQ9) has amended its private placement financing announced on August 30, 2024. The company now plans to raise up to $250,000 by offering up to 5,000,000 units at $0.05 per unit. Each unit consists of one common share and half a warrant, with each whole warrant allowing the purchase of one common share at $0.08 for 24 months.

Finders may receive a 7% cash commission and 7% warrants. The proceeds will be used for operating expenses, including legal and audit fees, and general working capital. Securities issued will have a four-month and one-day hold period.

Positive

• Successful completion could raise up to $250,000 in capital
• Warrants provide potential for additional future funding at $0.08 per share

Negative

• Potential dilution of existing shareholders' ownership
• Lower unit price of $0.05 compared to previous announcement, indicating possible decreased investor interest or market conditions

Vancouver, British Columbia--(Newsfile Corp. - September 3, 2024) - NINE MILE METALS LTD. (CSE: NINE) (OTCQB: VMSXF) (FSE: KQ9) (the "Company" or "Nine Mile") is issuing the following press release to amend its press release dated August 30, 2024 (CLICK HERE), to amend the price per Unit and intention to complete a private placement for proceeds of up to $250,000 (the "Private Placement").

The Private Placement will now consist of the sale of up to 5,000,000 units (each a "Unit") at a price of $0.05 per Unit. Each Unit will be 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 $0.08 per Common Share for a period of 24 months from the date of issuance.

In consideration for their services in introducing subscribers to the Company under 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 $0.08 for a period of 24 months.

The Company intends to use the proceeds for operating expenses, including legal and audit fees and general working capital.

All securities issued in the private placement will be 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.

"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 (a) the Company will close the private placement for proceeds of up to $250,000; and (b) 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/222040

FAQ

What is the new price per unit in Nine Mile Metals' amended private placement?

The new price per unit in Nine Mile Metals' amended private placement is $0.05.

How many units is Nine Mile Metals (VMSXF) offering in its revised private placement?

Nine Mile Metals is offering up to 5,000,000 units in its revised private placement.

What is the exercise price and duration of the warrants in Nine Mile Metals' private placement?

The warrants have an exercise price of $0.08 per common share and are valid for a period of 24 months from the date of issuance.

How does Nine Mile Metals (VMSXF) plan to use the proceeds from the private placement?

Nine Mile Metals plans to use the proceeds for operating expenses, including legal and audit fees, and general working capital.