Northern Graphite Closes $2.25 Million Charity Flow-Through Private Placement
Northern Graphite Closes $2.25 Million Charity
Flow-Through Private Placement
Ottawa, Ontario--(Newsfile Corp. - April 27, 2023) - Northern Graphite Corporation
(TSXV: NGC)
(OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG)
(the "
Company
" or "
Northern
") is pleased to announce
it has closed its previously announced non-brokered private placement financing for gross proceeds of
$2,250,000 (the "
Offering
"). Under the Offering, Northern issued 3,000,000 units of the Company on a
charity flow-through basis (the "
Charity FT Units
") at a price of C$0.75 per Charity FT Unit. Each
Charity FT Unit consists of one common share of the Company (a "
Common Share
") and one-half of
one common share purchase warrant of the Company (each whole warrant, a "
Warrant
"), each issued
as a "flow-through share" under the
Income Tax Act
(Canada) (the "
Tax Act
"). Each Warrant entitles the
holder thereof to purchase one Common Share on a non flow-through basis at an exercise price of
C$0.75 for a period of 24 months.
The gross proceeds from the Offering will be used to incur, on the Company's Canadian mineral
exploration properties, eligible resource exploration expenses that will qualify as (i) "Canadian
exploration expenses" (as defined in the Tax Act), and (ii) "flow-through critical mineral mining
expenditures" (as defined in subsection 127(9) of the Tax Act). The Company plans to use the proceeds
of the Offering to complete a drill program on a number of targets around its Lac des Iles, Québec
graphite mine with the objective of identifying potential new sources of mill feed.
The Offering was completed pursuant to the listed issuer financing exemption available in Part 5A of
National Instrument 45-106 -
Prospectus Exemptions
and the securities comprising and underlying the
Charity FT Units are not subject to any statutory hold periods.
Upon closing, the Company paid a cash finder's fee of $135,000 and issued 180,000 finder warrants
(the "
Finder Warrants
") to Sprott Capital Partners LP. Each Finder Warrant is exercisable to purchase
one Common Share at an exercise price of $0.75 per share (not $0.50 per share as previously
announced by the Company) for a period of 24 months.
The Offering is subject to final acceptance of the TSX Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the
securities in the United States. The securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S.
Securities Act
") or any state securities laws and
may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption from such registration is available.
About Northern Graphite
Northern is a Canadian, TSX Venture Exchange listed company that is focused on becoming a world
leader in producing natural graphite and upgrading it into high value products critical to the green
economy including anode material for lithium ion batteries/EVs, fuel cells and graphene, as well as
advanced industrial technologies.
Northern is the only significant graphite producing company in North America and will become the third
largest outside of China when its Namibian operations come back online. The Company also has two
large scale development projects, Bissett Creek in Ontario and Okanjande in Namibia, that will be a
source of continued production growth in the future. All projects have "battery quality" graphite and are
located close to infrastructure in politically stable countries.
For further information contact
Guillaume Jacq, CFO
Telephone: (613) 271-2124
Email:
Qualified Person
Gregory Bowes, B.Sc. MBA P.Geo, the Chairman of Northern, is a "qualified person" as defined under
NI 43-101 and has reviewed and approved the content of this news release.
For additional information
Please visit the Company's website at
http://www.northerngraphite.com/investors/presentation/
, the
Company's profile on
www.sedar.com
, our
Social Channels
listed below or
contact the Company at
(613) 271-2124.
YouTube
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" within the meaning of applicable
Canadian securities laws. Forward-looking statements and information are frequently characterized by
words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential",
"possible" and other similar words, or statements that certain events or conditions "may", "will",
"could", or "should" occur. Forward-looking statements in this release include statements regarding,
among others: the use of proceeds from the Offering; the Company's objectives, goals and
exploration activities proposed to be conducted at the Company's properties; and whether any
proposed exploration programs at any of the Company's properties will be successful. All such
forward-looking statements are based on assumptions and analyses made by management based on
their experience and perception of historical trends, current conditions and expected future
developments, as well as other factors they believe are appropriate in the circumstances. However,
these statements are subject to a variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected including, but not limited to
unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the
failure of other parties to perform as agreed; social or labour unrest; changes in commodity prices;
unexpected failure or inadequacy of infrastructure and the failure of ongoing and contemplated
studies to deliver anticipated results or results that would justify and support continued studies,
development or operations. Readers are cautioned not to place undue reliance on forward-looking
information or statements.
Although the forward-looking statements contained in this news release are based on what
management believes are reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with them. These forward-looking statements are made as of the date
of this news release and are expressly qualified in their entirety by this cautionary statement. Subject
to applicable securities laws, the Company does not assume any obligation to update or revise the
forward-looking statements contained herein to reflect events or circumstances occurring after the
date of this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION,
DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN
OR INTO THE UNITED STATES.
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