Offering raises proceeds for exploration; greenshoe exercised in full
By Devika Patel
Knoxville, Tenn., Nov. 1 - Northern Gold Mining Inc. said it completed the first tranche of a private placement of units. The deal is being conducted on a best efforts basis with lead agents Canaccord Genuity Corp. and BayFront Capital Partners Ltd. The agent syndicate also includes GMP Securities LP.
The company priced the deal at C$3 million with a C$2 million greenshoe on Oct. 13. The agents have decided to exercise the greenshoe in full and raised C$3.82 million in this tranche.
The company is selling flow-through units at C$0.45 apiece. Each flow-through unit consists of one flow-through common share and one half-share warrant.
The company also is selling hard-dollar units at C$0.40 apiece. Each hard-dollar unit consists of one common share and one warrant.
Each whole warrant is exercisable at C$0.55 for two years. The strike price is a 44.74% premium to C$0.38, the Oct. 12 closing share price.
The company will sell a maximum of C$2 million in flow-through units. It sold 1.1 million flow-through units and 7,707,500 hard dollar units in the first tranche. The second tranche will consist of 3.15 million flow-through units and is expected to settle in one week.
Proceeds will be used for mineral exploration and working capital.
Northern Gold Mining is a Toronto junior resource company focused on the acquisition and exploration of base and precious metal mineral properties.
| Issuer: | Northern Gold Mining Inc.
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| Issue: | Flow-through units of one flow-through common share and one half-share warrant, hard-dollar units of one common share and one warrant
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| Amount: | C$5 million (including C$2 million greenshoe)
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| Warrant strike price: | C$0.55
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| Warrant expiration: | Two years
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| Agent: | Canaccord Genuity Corp. and BayFront Capital Partners Ltd. (leads), GMP Securities LP
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| Pricing date: | Oct. 13
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| Settlement date: | Nov. 1 (for C$3,582,500)
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| Stock symbol: | TSX Venture: NGM
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| Stock price: | C$0.355 at close Oct. 13
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| Market capitalization: | C$24.14 million
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| Flow-through units
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| Amount: | C$2 million (maximum)
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| Price: | C$0.45
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| Warrants: | One half-share warrant per unit
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| Hard-dollar units
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| Price: | C$0.40
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| Warrants: | One warrant per unit
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