Nine Mile Metals Announces Non-Brokered Private Placement

Rhea-AI Summary

Nine Mile Metals (CSE: NINE, OTC: VMSXF) has announced a non-brokered private placement to raise up to $300,000 through the issuance of up to 8,571,428 flow-through units at $0.035 per unit. Each unit includes one flow-through common share and one warrant, allowing purchase of an additional common share at $0.05 for five years.

The company may pay finder's fees up to 7% in cash and issue finder's warrants up to 7% of securities sold. Finder's warrants will be exercisable at $0.035 per share for five years. Proceeds will fund exploration activities, including drilling, core sample splitting, assays, and surveys. All securities will have a four-month and one-day hold period.

Positive

• Secured potential funding of $300,000 for exploration activities
• Five-year warrant term provides long-term investment opportunity

Negative

• Potential dilution of existing shareholders through issuance of up to 8,571,428 new units
• Low unit price of $0.035 indicates possible market weakness
• Additional dilution possible through 7% finder's warrants

Vancouver, British Columbia--(Newsfile Corp. - December 19, 2024) - NINE MILE METALS LTD. (CSE: NINE) (OTC Pink: VMSXF) (FSE: KQ9) (the "Company" or "Nine Mile") is pleased to announce that it intends to complete a non-brokered private placement offering to raise up to $300,000 through the issuance of up to 8,571,428 flow-through units (each, an "FT Unit") at a price of $0.035 per FT Unit (the "Private Placement").

Each FT Unit will consist of one flow-through common share of the Company (each a "Common Share") and one common share purchase warrant (each common share purchase warrant, a "Warrant"), with each Warrant entitling the holder thereof to purchase one Common Share at a price of $0.05 for a period of five (5) years from the date of issuance.

The Company may pay finder's fees of up to 7% of subscription amounts placed, payable in cash, plus issue finder's warrants in an amount up to 7% of securities sold, with each finder's warrant exercisable to acquire one common share of the Company at a price of $0.035 for a period of five (5) years from the date of issuance.

The proceeds from the sale of the FT Units will be used for exploration costs, including drilling, splitting core samples, assays, and surveys.

The Common Shares, and any Common Shares to be issued on exercise of the Warrants and finder's warrants, will be subject to a hold period under applicable Canadian securities laws expiring four months and one day from the date of issuance.

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, including statements concerning our plans to complete the non-brokered private placement to raise funds. 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/234610

FAQ

What is the size and price of Nine Mile Metals' (VMSXF) December 2024 private placement?

Nine Mile Metals announced a private placement to raise up to $300,000 through issuing up to 8,571,428 flow-through units at $0.035 per unit.

What are the warrant terms in VMSXF's December 2024 private placement?

Each warrant allows holders to purchase one common share at $0.05 for a five-year period from the date of issuance.

How will Nine Mile Metals (VMSXF) use the proceeds from the December 2024 private placement?

The proceeds will be used for exploration costs, including drilling, splitting core samples, assays, and surveys.

What are the finder's fees terms in VMSXF's December 2024 private placement?

The company may pay up to 7% cash finder's fees and issue finder's warrants up to 7% of securities sold, exercisable at $0.035 for five years.