Company plans qualifying transaction with diamond drilling company
By Devika Patel
Knoxville, Tenn., Jan. 6 - High North Resources Ltd. said it plans a C$5 million private placement of units.
The company will sell 2 million units of one common share and one half-share warrant at C$0.40 per unit and 7 million flow-through units of one flow-through common share and one half-share warrant at C$0.60 per unit.
Each whole unit warrant is exercisable at C$0.60 for two years. Each whole flow-through unit warrant is exercisable at C$0.80 for two years. The strike prices are 135.29% and 213.73% premiums to the Jan. 5 closing share price of C$0.255.
The company also said it will buy at least 90% of Mt. Cameron Minerals Inc.'s outstanding shares in exchange for 15,683,750 company shares. The privately held diamond drilling company owns the Boisdale Hills Graphite Project in Nova Scotia. This will constitute the company's qualifying transaction.
Proceeds of the placement will be used for acquisition costs and exploration work in connection the project and for general working capital purposes.
High North is Vancouver, B.C., capital pool company.
| Issuer: | High North Resources Ltd.
|
| Issue: | Units of one common share and one half-share warrant, flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$5 million
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Pricing date: | Jan. 6
|
| Stock symbol: | TSX Venture: HN.P
|
| Stock price: | C$0.26 at close Jan. 6
|
| Market capitalization: | C$1.67 million
|
|
|
| Units
|
| Amount: | C$800,000
|
| Units: | 2 million
|
| Price: | C$0.40
|
| Warrant strike price: | C$0.60
|
|
|
| Flow-through units
|
| Amount: | C$4.2 million
|
| Units: | 7 million
|
| Price: | C$0.60
|
| Warrant strike price: | C$0.80
|
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