Nine Mile raises $4.6 million for Bathurst critical minerals projects
Nine Mile Metals Ltd. [NINE-CSE, VMSXF-OTC Pink, KQ9-FSE] has raised $4.63 million from a private placement offering and will use the proceeds to fund exploration and related expenses at its critical minerals projects in the Bathurst Mining Camp in New Brunswick.
Nine Mile Metals is a Canadian exploration company with a focus on VMS (volcanogenic massive sulphide) copper, lead, zinc, silver and gold exploration in the fabled Bathurst camp, where it has four VMS projects. They include Nine Mile Brook, the California Lake, Canoe Landing Lake (East-West) project and the Wedge project. Nine Mile has said it is aiming to position itself for the boom in electric vehicle and green technologies requiring copper, silver, lead and zinc with a hedge with gold.
Under the terms of the financing, Nine Mile issued 24.4 million units priced at 19 cents per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant is exercisable into one common share at a price of 30 cents for two years. However, if the daily volume weighted average trading price of the common shares on the Canadian Securities Exchange equals or exceeds 50 cents for 10 consecutive trading days, the company may accelerate the expiry date of the warrants by providing 30 days notice to shareholders.
Nine Mile shares were unchanged at 15.7 cents, Thursday. The shares trade in a 52-week range of 20.5 cents and $0.004.
“This support enables us to accelerate our growth initiatives while maintaining a disciplined approach to capital allocation,’’ said Nine Mile CEO Patrick J. Cruickshank. “In addition to the offering, the company has received over $1.0 million from the exercise of warrants during the past few weeks,” he said. “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.’’
News of the financing comes after Nine Mile announced certified high-grade assay results up to 15% copper for VMS mineralization collected from the pre-drill area on the Wedge Project. “The mineralization is massive in character, fine grained, with basic Fe (Pyrite) and copper sulphides (Chalcopyrite – Covellite), mineralogy as we have seen in recent drilling,’’ said Gary Lohman, Vice-President, Exploration at Nine Mile. “Visible covellite was locally present, adding a high-grade component to the system,’’ he said. “Again, these values explain what we are seeing in our drill core from our first three holes.’’
The Wedge project cover 35.8 square kilometres. The Wedge deposit was mined by Cominco, producing 1.5 million tonnes of grade 2.88% copper, 0.65% lead, 1.81% zinc, and 20.6 g/t silver. The Wedge Project borders Nine Mile’s California Lake and Canoe Landing Laike Projects and solidifies a regional land portfolio in the Bathurst Mining Camp Saddle folds.