Nine Mile Metals Ltd. Announces New Private Placement to Raise Up to $400,000

Introduction to the Private Placement

Nine Mile Metals Ltd. (CSE: NINE) (OTC Pink: VMSXF) (FSE: KQ9), a Canadian mineral exploration company, has revealed plans to initiate a new private placement, aiming to secure up to $400,000 in funding. This initiative will include both Flow-through (FT) and Non-flow-through (NFT) units.

Details of the Flow-through Private Placement

The FT private placement will involve the issuance of up to 12.5 million units, priced at $0.02 each, potentially generating gross proceeds of $250,000. Each unit will consist of one common share and one common share purchase warrant, allowing the holder to purchase an additional common share at $0.05 for a period of 36 months following issuance.

Finder’s Compensation for FT Placement

To incentivize those who help connect subscribers to the FT private placement, finders will be eligible for an 8% cash commission and an equivalent amount in common share purchase warrants, also exercisable at $0.05 for 36 months.

Purpose of the FT Proceeds

Funds raised from the FT private placement will primarily support drilling activities at the Wedge Project and the recently announced NBJMAP Grant project at California Lake East, specifically targeting area #6. Additional proceeds will be allocated to various exploration-related expenses.

Overview of the Non-flow-through Private Placement

The NFT private placement will offer up to 10 million units at a price of $0.015 each, aiming for total gross proceeds of $150,000. Each NFT unit will include one common share and half of a common share purchase warrant. Full NFT warrants will permit the holder to acquire one common share at $0.05 for a duration of 36 months from issuance.

Finder’s Compensation for NFT Placement

Similar to the FT placement, finders for the NFT private placement will receive an 8% cash commission along with 8% in common share purchase warrants, valid for 24 months at the same exercise price of $0.05.

Allocation of NFT Proceeds

The proceeds from the NFT private placement will be directed towards operational expenses and general working capital needs.

Securities Regulations

All securities issued through this private placement will be subject to a hold period of four months and one day.

About Nine Mile Metals Ltd.

Nine Mile Metals Ltd. is dedicated to mineral exploration in Canada, focusing on Volcanogenic Massive Sulfide (VMS) deposits, including copper, lead, zinc, silver, and gold. The company is strategically positioned in the Bathurst Mining Camp in New Brunswick, with a commitment to exploring four key VMS projects: Nine Mile Brook, California Lake, Canoe Landing Lake, and Wedge. The company aims to capitalize on the growing demand for critical minerals essential for electric vehicles and green technologies.

Forward-Looking Statements

This announcement may contain forward-looking statements as defined by Canadian securities regulations. These statements reflect management’s expectations and assumptions, including the anticipated closure of the private placement and the intended use of proceeds. While Nine Mile believes these expectations are reasonable, there is no guarantee they will materialize.

Disclaimer

The Canadian Securities Exchange (CSE) has not reviewed this announcement and does not assume responsibility for its accuracy or completeness.

For the complete version of this press release, please visit the official source.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.