Nine Mile Metals closes $4.63-million offering

Executive Summary

• Nine Mile Metals Ltd. has closed its previously announced private placement, raising gross proceeds of $4,631,250 through the issuance of 24,374,997 units at $0.19 per unit.
• The offering was oversubscribed, and the company also received over $1 million from the exercise of existing warrants in recent weeks.
• Proceeds will be used for exploration activities on critical minerals projects in the Bathurst mining camp and for general and administrative obligations.

Key Details

• Gross Proceeds: $4,631,250.
• Units Issued: 24,374,997 units.
• Price Per Unit: $0.19.
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms:
  • Each warrant is exercisable into one common share at an exercise price of $0.30.
  • Initial term: Two years.
  • Acceleration Clause: If the daily volume-weighted average trading price on the Canadian Securities Exchange equals or exceeds $0.50 for 10 consecutive trading days, the company may accelerate the expiry date with 30 days' notice.
• Finder’s Fees:
  • Cash fees paid: $279,667.52.
  • Warrants issued to finders: 1,471,934 finders' warrants.
  • Finder's Warrant Terms: Exercisable for one additional unit at $0.19 for two years; underlying securities subject to a statutory hold period of four months and one day.
• Use of Proceeds:
  • Exploration activities and related expenses on critical minerals projects in the Bathurst mining camp.
  • General and administrative obligations.
• Regulatory Exemption: Issued pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106.
• Additional Capital: The company noted receiving over $1 million from the exercise of warrants during the past few weeks.

Notable Quotes

• "We are encouraged by the significant investor interest in this financing, which resulted in the offering being oversubscribed. This support enables us to accelerate our growth initiatives while maintaining a disciplined approach to capital allocation. In addition to the offering, the company has received over $1-million from the exercise of warrants during the past few weeks. We are positioned strongly for the next 24 months and the new capital will enable us to execute an extensive exploration program for the next two years." — Patrick J. Cruickshank, Chief Executive Officer and Director