Nine Mile Metals Private Placement Financing

Rhea-AI Summary

Nine Mile Metals (CSE: NINE, OTCQB: VMSXF, FSE: KQ9) has announced its intention to complete a private placement to raise up to $250,000. The company plans to issue up to 6,250,000 units at $0.04 per unit. Each unit comprises one common share and half a warrant, with each full warrant allowing the purchase of an additional common share at $0.08 within 24 months of issuance.

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

Positive

• Potential to raise up to $250,000 in additional capital
• Warrants provide potential for future capital at $0.08 per share
• Funds to be used for operating expenses and working capital

Negative

• Dilution of existing shareholders' ownership
• Low unit price of $0.04 may indicate financial pressure
• Additional shares and warrants may put downward pressure on stock price

Vancouver, British Columbia--(Newsfile Corp. - August 30, 2024) - NINE MILE METALS LTD. (CSE: NINE) (OTCQB: VMSXF) (FSE: KQ9) (the "Company" or "Nine Mile") announces its intention to complete a private placement for proceeds of up to $250,000 (the "Private Placement").

The Private Placement will consist of the sale of up to 6,250,000 units (each a "Unit") at a price of $0.04 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/221701

FAQ

What is the size and price of Nine Mile Metals' (VMSXF) private placement announced on August 30, 2024?

Nine Mile Metals announced a private placement to raise up to $250,000 by issuing up to 6,250,000 units at $0.04 per unit.

What does each unit in Nine Mile Metals' (VMSXF) private placement consist of?

Each unit consists of one common share and one-half of one common share purchase warrant, with each full warrant allowing the purchase of an additional share at $0.08 for 24 months.

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

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

What is the hold period for securities issued in Nine Mile Metals' (VMSXF) private placement?

All securities issued in the private placement will be subject to a four-month and one-day hold period.