Why is Nine Mile Metals pursuing a flow-through financing strategy?
Nine Mile Metals Announces Flow-Through Financing to Accelerate Exploration Programs
Nine Mile Metals Ltd. (CSE: NINE, OTCQB: VMSXF, FSE: KQ9), a prominent Canadian mineral exploration company specializing in Critical Minerals Exploration (CME), has unveiled its plans for a new flow-through (“FT”) private placement aimed at funding crucial exploration activities.
The Flow-Through Private Placement Details
Nine Mile Metals is set to embark on a strategic FT private placement, offering up to 2,500,000 FT Units at a unit price of $0. 20 each. The total gross proceeds from this placement could reach an impressive $500,000. Each FT Unit comprises the following components:
One common share issued on a flow-through basis (“FT Share”)
One-half of a Common Share purchase warrant, issued on a non-flow-through basis (“Warrant”)
The full Warrant allows the holder to acquire one Common Share at a fixed price of $0. 23 per Common Share.
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This option remains open for a 24-month period from the date of issuance. Importantly, the FT Shares are designed to qualify as “flow-through shares” in accordance with subsection 66(15) of the Income Tax Act (Canada).
As part of the FT private placement, finders who introduce subscribers to the Company may receive compensation in the form of an 8% cash commission and 8% common share purchase warrants. These warrants can be exercised to purchase one common share at a price of $0. 23 per share, with a 24-month exercise window.
It's noteworthy that no Related Parties have expressed intentions to participate in this placement, and the FT private placement is not expected to create any new control persons.
Allocation of Proceeds for Exploration Programs
Nine Mile Metals intends to allocate the net proceeds generated from the FT private placement to finance ongoing and planned drilling programs at its California Lake and Wedge properties, both situated in the world-renowned Bathurst Mining Camp, New Brunswick, Canada. These initiatives are strategically aligned to qualify as “Canadian Exploration Expenses” that meet the criteria for “flow-through mining expenditures” as defined by the Income Tax Act (Canada).
All securities issued through the FT private placement will be subject to a standard four-month and one-day hold period.
About Nine Mile Metals Ltd.
Nine Mile Metals Ltd. is a distinguished Canadian mineral exploration company with a keen focus on Critical Minerals Exploration (CME) within the highly regarded Bathurst Mining Camp in New Brunswick, Canada. The company's primary objective centers on the exploration of four valuable VMS Projects:
Nine Mile Brook VMS
California Lake VMS
Canoe Landing Lake (East–West) VMS
Wedge VMS Projects
Nine Mile Metals Ltd. places a strong emphasis on Critical Minerals Exploration (CME) to align with the growing demand for essential minerals, particularly in the electric vehicle (EV) and green technology sectors. The company's portfolio includes copper, silver, lead, and zinc resources, complemented by a strategic hedge with gold.
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