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Positive
- Offering upsized to C$65M from C$50M
- 11,403,509 Units priced at C$5.70 per Unit
- Proceeds allocated to prepay APA milestone before end-2025
Negative
- Warrants exercisable at C$8.00 for 24 months (potential dilution)
- Agents fee equal to 6% of gross proceeds (cash)
- Over-Allotment Option up to 15% increases potential issuance
Insights
Large equity raise upsized to C$65 million; market demand allowed higher
size.
The Company plans a marketed public offering of up to 11,403,509 units at
C$5.70 per unit, each with a two‑year warrant exercisable at C$8.00. The offering
includes a 15% over‑allotment option and a cash agency fee of 6% (reduced to 2%
for certain investors).
Proceeds target the prepayment of the first contingent APA milestone for the Selebi
and Selkirk mines, exploration and development in Botswana, and general working
capital, with expected close on or about November 13, 2025. Watch for closing,
Over‑Allotment exercise and actual use of proceeds over the next 3–12 months.
Upsized financing signals investor appetite and funds near‑term milestone
obligations and development spend.
Funds are earmarked to prepay a contingent milestone under the APA for Selebi and
Selkirk, plus exploration and corporate purposes. That directly reduces a
near‑term cash obligation and supplies capital for project activities.
Key monitors: confirmation of closing on or about November 13, 2025, whether the
Over‑Allotment Option is exercised, and disclosure of exact prepayment timing and
remaining cash runway after the transaction; expect material updates within weeks
to months.
10/28/2025 – 10:03 AM
Upsized from $50 Million Due to Strong Demand
Vancouver, British Columbia – October 28, 2025 – NexMetals Mining Corp. (TSXV: NEXM, Nasdaq: NEXM)
today announced the launch of a “best efforts” public offering, signaling strong investor confidence in the
company’s strategic direction and asset portfolio. The offering, managed by a syndicate of agents, aims to raise
up to C$65 million through the issuance of 11,403,509 units, priced at C$5.70 per unit. This figure was
increased from an initial target of C$50 million, reflecting significant investor demand.
Each unit comprises one common share and one warrant, with each warrant allowing the holder to purchase an
additional common share at C$8.00 within a 24-month period. The structure includes an over-allotment option,
potentially increasing the total offering size by up to 15%, further underscoring the anticipated market
interest.
The company intends to allocate the net proceeds towards several key strategic objectives: primarily, the
prepayment of a contingent milestone payment associated with the Asset Purchase Agreement (APA) for the Selebi
and Selkirk mines, slated for completion before the end of 2025. A significant portion will also be invested to
accelerate exploration and development initiatives at NexMetals’ mineral assets in Botswana. Bolstering working
capital reserves is also a core objective to ensure operational flexibility.
“The robust demand for this offering speaks volumes about the market’s belief in our long-term strategy and the
potential of our Botswana assets,” stated a company spokesperson. “This capital injection will enable us to
expedite our development timelines and capitalize on the growing demand for critical minerals.” Investors should
note that the offering is being conducted via a short-form prospectus in Canada (excluding Quebec) and through
private placements in the United States and other select jurisdictions.
While the equity raise is a positive sign, analysts at CNBC note potential dilution for existing shareholders due
to the warrant structure, and are watching the impact of agent fees (6% of gross proceeds) on the net capital
available for project development. Closing is anticipated around November 13, 2025, contingent upon regulatory approval.
FAQ
What is NexMetals (NEXM) offering size and price in the October 28, 2025 announcement?
NexMetals announced up to 11,403,509 Units at C$5.70 per Unit for aggregate gross proceeds up to C$65
million.
What does each NexMetals Unit include and what are the warrant terms (NEXM)?
Each Unit includes one common share and one warrant; each warrant is exercisable for one share at C$8.00
and expires 24 months after issuance.
How will NexMetals (NEXM) use the net proceeds from the offering?
Proceeds are expected to prepay a contingent APA milestone for Selebi and Selkirk, advance Botswana
exploration and development, and support working capital.
When is the NexMetals offering expected to close and is there an over-allotment option?
The Offering is expected to close on or about November 13, 2025, and includes a 15% Over-Allotment
Option exercisable for 30 days from closing.
What fees will NexMetals pay the agents for the offering (NEXM)?
The company agreed to pay a cash fee equal to 6% of gross proceeds, with a reduced 2% fee for certain
president’s list sales up to C$5 million.
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