High North completes C$8.61 million private placement of shares, units

Non-brokered offering funds drilling, general working capital purposes

By Devika Patel

Knoxville, Tenn., Oct. 31 - High North Resources Ltd. said it settled a C$5.23 million second and final tranche of an C$8.61 million non-brokered private placement of stock and units. The deal priced for C$8.25 million on May 14; it raised C$3.38 million on July 29.

The company sold 4,701,250 flow-through common shares at C$0.40 apiece and 19,226,456 units of one common share and a half-share warrant at C$0.35 per unit. It sold 2,768,750 shares and 6,492,700 units in the first tranche and 1,932,500 shares and 12,733,756 units in the second tranche.

Each whole warrant is exercisable at C$0.50 for two years.

The price per share and warrant strike price represent 14.29% and 42.86% premiums to C$0.35, the May 13 closing share price.

Proceeds will be used to drill the first test well at the Valleyview property and for general working capital purposes.

High North is a Calgary, Alta., oil and gas development company.

Issuer:	High North Resources Ltd.
Issue:	Flow-through common shares, units of one common share and a half-share warrant
Amount:	C$8,609,760
Agent:	Non-brokered
Pricing date:	May 14
Settlement date:	July 29 (for C$3,379,945), Oct. 31 (for C$5,229,815)
Stock symbol:	TSX Venture: HN
Stock price:	C$0.35 at close May 13
Market capitalization:	C$16.25 million
Shares
Amount:	C$1,880,500
Shares:	4,701,250
Price:	C$0.40
Warrants:	No
Units
Amount:	C$6,729,260
Units:	19,226,456
Price:	C$0.35
Warrants:	One half-share warrant per unit
Warrant expiration:	Two years
Warrant strike price:	C$0.50

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