Nine Mile Metals Ltd. Reports Successful Closure of Oversubscribed Private Placement
Nine Mile Metals Ltd. (CSE: NINE, OTC Pink: VMSXF, FSE: KQ9) announced on 21 January 2026 that it has completed a private placement, raising gross proceeds of $4,631,250. The placement involved the issuance of 24,374,997 units at a unit price of $0.19. Each unit comprises one common share and one common share purchase warrant, allowing holders to acquire an additional common share at $0.30 within two years.
Key Terms of the Offering
| Item | Detail |
|---|---|
| Unit composition | 1 common share + 1 warrant |
| Warrant exercise price | $0.30 per share |
| Warrant term | 2 years, with acceleration if the daily VWAP of common shares on the CSE reaches $0.50 for ten consecutive trading days |
| Oversubscription | The offering was fully subscribed, with additional demand that was not fully absorbed |
| Capital allocation | Funds will support accelerated exploration and development activities, particularly at the 9 Mile property in British Columbia |
| Additional capital inflow | Over $1 million has already been received from warrant exercises in recent weeks |
Management Commentary
CEO Patrick J. Cruickshank stated that the strong investor interest has provided the company with a robust financial foundation for the next 24 months. “This support enables us to accelerate our growth initiatives while maintaining a disciplined approach to capital allocation,” he said. He highlighted that the new capital will fund an extensive exploration program over the next two years.
Market Context
The company’s shares traded at $0.23 on 20 January 2026, within a 52‑week range of $0.275 (high) to $0.005 (low). With a market capitalization of approximately $19.2 million CAD, the private placement represents a significant infusion relative to the company’s current equity base.
Strategic Implications
The proceeds will be deployed to:
- Accelerate exploration at existing Canadian properties, with a focus on sustainable mining practices.
- Expand the resource base to enhance shareholder value.
- Maintain disciplined capital allocation, ensuring that funding is directed toward high‑potential projects.
The successful closure of the LIFE (Liquid Investment and Funding Equity) offering confirms Nine Mile Metals’ ability to attract private capital and underscores its commitment to responsible mining and development activities.
