Nine Mile Metals Closes First Tranche of Private Placement Financing

Rhea-AI Summary

Nine Mile Metals (CSE: NINE, OTC: VMSXF) has completed the first tranche of a private placement financing, raising $25,000 in cash and converting $231,150 in debt. The company issued 12,197,619 units at $0.021 per unit. Each unit includes one common share and one purchase warrant, exercisable at $0.05 per share for 5 years.

A director and officer participated, purchasing 1,190,476 units in cash ($25,000) and 1,369,048 units ($28,750) through debt conversion. The majority of units (11,007,143) were issued to settle convertible loans due December 14, 2024, including interest. The cash proceeds will be used for general working capital. All securities are subject to a four-month and one-day hold period.

Positive

• Successful debt conversion of $231,150, reducing company's debt obligations
• 5-year warrant term provides long-term potential upside for investors
• Insider participation demonstrates management confidence

Negative

• Small cash raise of only $25,000 indicates investor interest
• Low unit price of $0.021 suggests weak market valuation
• Significant dilution through issuance of 12,197,619 new units

Vancouver, British Columbia--(Newsfile Corp. - February 4, 2025) - NINE MILE METALS LTD. (CSE: NINE) (OTC PINK: VMSXF) (FSE: KQ9) (the "Company" or "Nine Mile") announces that it has completed a first tranche private placement financing for cash proceeds of $25,000 and bona fide debt conversion of $231,150 (the "Private Placement"). The Company issued 12,197,619 units at a price of $0.021 each. Each unit consists of one common share and one common share purchase warrant (each a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share at a price of $0.05 per Common Share for a period of 5 years from the date of issuance.

The common shares and Warrants issued in the Private Placement are subject to a four month and a day hold period. There were no commissions paid.

A director and officer of the Company purchased 1,190,476 Units ($25,000) in cash and 1,369,048 Units ($28,750) in the debt conversion converted under the Offering. The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101 in respect of such insider participation.

The Company intends to use the cash proceeds of the Private Placement for general working capital.

11,007,143 units were 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.

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 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/239652

FAQ

How much did Nine Mile Metals (VMSXF) raise in their February 2025 private placement?

Nine Mile Metals raised $25,000 in cash and converted $231,150 in debt, for a total financing of $256,150.

What are the terms of VMSXF's February 2025 warrant offering?

Each warrant allows holders to purchase one common share at $0.05 per share for a period of 5 years from issuance.

How many units did Nine Mile Metals (VMSXF) issue in the February 2025 private placement?

Nine Mile Metals issued 12,197,619 units at $0.021 per unit.

What was the insider participation in VMSXF's February 2025 private placement?

A director and officer purchased 1,190,476 units ($25,000) in cash and 1,369,048 units ($28,750) through debt conversion.

How much convertible debt did Nine Mile Metals (VMSXF) settle in February 2025?

The company settled $231,150 in convertible loans and interest through the issuance of 11,007,143 units.