Nine Miles Metals Ltd. (OTC:VMSXF) Stock Rallies 12% After Updates to Convertible Loan Financing

On Monday, Nine Miles Metals Ltd. (OTC:VMSXF) was in the news cycle after it announced that it had decided to amend its proposed convertible unsecured loan financing. The announcement about the same had been made by the company through press releases on November 21 and November 27, 2023. It was revealed that the convertible loan would continue to have a 12-month term and bear interest to the tune of 15% a year.

The interest would be payable on the maturity date. Nine Miles Metals Ltd. revealed that the proceeds from the convertible loan would be deployed towards the advancement of the bulk sample program related to the Nine Mile Brook project and also for general working capital.

Despite the amendment, the loan would continue to be convertible for the price of $0.10 per unit. As the company had announced previously, a unit would be made up of one common share in Nine Mile Metals Ltd. and one common share purchase warrant. Each warrant could be exercised to pick up a share for $0.10 for 24 months.

The major update about convertible loan financing was that the proceeds would be a maximum of $250,000. Additionally, it was noted that it would be the lender’s choice if the amount owed on the date of maturity would be converted into units or not.

Nine Miles Metals Ltd. had previously announced in its press releases that those entities that would introduce subscribers to the company for the loan could be entitled to a finder’s fee. The finders could receive as much as 8% in cash and 8% in the form of common-share purchase warrants.

The share purchase warrants could be exercised to pick up common shares for $0.10 each for a period of up to 24 months. Investors ought to note that the terms are subject to acceptance granted by the CSE.