Nine Mile Metals closes $250,000 private placement

Executive Summary

• Nine Mile Metals Ltd. closed an oversubscribed non-brokered flow-through private placement, raising $400,000 from the issuance of 20 million units at $0.02 per unit.
• The financing was originally sized at $250,000 but was oversubscribed, with proceeds allocated to exploration activities and related expenses on the company's NB critical minerals projects in the Bathurst mining camp.
• The company incurred $8,000 in commissions and issued 400,000 compensation warrants, while three directors participated in the offering, purchasing 2.25 million units.

Key Details

• Transaction Structure: Non-brokered flow-through private placement.
• Units Issued: 20,000,000 units.
• Price Per Unit: $0.02 CAD.
• Gross Proceeds: $400,000 CAD (Original size was $250,000).
• Warrant Terms (Investors): Each unit includes one common share purchase warrant. Each warrant allows the purchase of one common share at $0.05 per share for a period of 36 months.
• Use of Proceeds: Exploration activities and related expenses on the company's NB critical minerals projects in the Bathurst mining camp.
• Insider Participation: Three current directors purchased 2,250,000 units for $45,000. The company relied on exemptions from valuation and minority shareholder approval requirements under Multilateral Instrument 61-101 (sections 5.5(b) and 5.7(1)(a)).
• Commissions and Compensation: Aggregate commissions of $8,000 were paid. An aggregate of 400,000 compensation warrants were issued, entitling holders to purchase one common share at $0.05 per share for 36 months.
• Regulatory/Compliance: The issuance of common shares will not result in a new insider or control person. Common shares and warrants are subject to a hold period under Canadian securities laws expiring four months and one day from the date of issuance.
• Strategic Update: CEO Patrick J. Cruickshank noted the inclusion of a strategic investor and the organization of mobilization for the previously announced drill program at the Wedge critical mineral project.

Notable Quotes

• "We are pleased to have closed this funding, including a strategic investor, and we are organizing the mobilization of our previously announced drill program at the Wedge critical mineral project." — Patrick J. Cruickshank, Chief Executive Officer and Director