Deal to fund equipment, permitting, infrastructure for drilling plans
By Devika Patel
Knoxville, Tenn., Oct. 6 - North Country Gold Corp. said it will sell 10 million units at C$0.50 apiece in a private placement of units through agent Canaccord Genuity Corp.
The C$5 million in units consist of one common share and one half-share warrant and will be sold on a commercially reasonable efforts basis. The whole warrants are exercisable at C$0.60 for two years.
The strike price is a 17.65% premium to the Oct. 5 closing share price of C$0.51.
Settlement is expected Oct. 28.
"With the proceeds of this C$5 million financing, North Country Gold Corp. will initiate the procurement of the necessary personnel, equipment, permitting and infrastructure to execute a 30,000 meter drill program in 2011," company president and chief executive officer John Williamson said in a press release. "This program will build upon our highly successful 2010 campaign and represents the largest scope ever undertaken on the Three Bluffs project in eastern Nunavut."
The company anticipates increasing its drilling fleet to 6 rigs, and also will seek permitting for the construction of a 5,000 foot air strip. In addition, it will improve the site infrastructure by adding semi-permanent structures for exploration and development.
The Edmonton, Alta.-based issuer explores for minerals.
| Issuer: | North Country Gold Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$5 million
|
| Units: | 10 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.60
|
| Agent: | Canaccord Genuity Corp.
|
| Pricing date: | Oct. 6
|
| Settlement date: | Oct. 28
|
| Stock symbol: | TSX Venture: NCG
|
| Stock price: | C$0.51 at close Oct. 5
|
| Market capitalization: | C$32.44 million
|
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