By Sheri Kasprzak
Atlanta, Nov. 18 - Northern Sun Exploration Co. Inc. said Thursday it has priced C$5 million of units in a private placement.
The deal consists of four million non flow-through units at C$0.50.and up to 5,454,546 flow-through units at C$0.55.
The non flow-through units consist of one share and one warrant for an additional share at C$0.65 for one year and C$0.85 for the second year. The flow-through units consist of one flow-through common share and one warrant with a strike price of C$0.65 for the first year and C$0.85 for the second.
The expiry of the warrants may be accelerated to 30 days following the date the company announces the acceleration. The company will accelerate the warrants if the company's stock closes at a price greater than C$1 for 20 trading days at any time after the four-month hold during the first year or if the shares trade greater than C$1.20 for 20 trading days at any time in the second year.
PowerOne Capital Markets Ltd. is placement agent in the offering.
Based in Vancouver, B.C., Northern Sun is a petroleum and natural gas exploration company. It plans to use the proceeds from the offering to fund its exploration program on its joint-venture properties with the Kapawe'no First Nation in Alberta. The company will also use some of the funds for general working capital.
| Issuer: | Northern Sun Exploration Co. Inc.
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| Issue: | Flow-through and non flow-through units
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| Amount: | C$5 million
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| Placement agent: | PowerOne Capital Market Ltd.
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| Announcement date: | Nov. 18
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| Stock price: | C$0.50 at close Nov. 18
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| Flow-through units
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| Issue: | Units of one flow-through common share and one warrant
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| Shares: | 5,454,546 units
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| Price: | C$0.55
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| Warrants: | One warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.65 for the first year; C$0.85 for the second year
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| Non flow-through units
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| Issue: | Units of one common share and one warrant
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| Shares: | 4 million
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| Price: | C$0.50
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| Warrants: | One warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.65 for the first year; C$0.85 for the second year
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