Northern Lights Completes First Tranche of Private Placement
Northern Lights Completes
First Tranche of Private Placement
January 3, 2020 CSE Symbol: NLR
Vancouver, British Columbia. Northern Lights Resources Corp. (the “Company” or
“Northern Lights”) is pleased to announce that further to the news release of July 11,
2019, it has completed a first tranche of a non-brokered private placement financing of
12,627,772 units of the Company (the “Units”) at a price of $0.05 per Unit, for total gross
proceeds of $631,389 (the “First Tranche Financing”).
The First Tranche Financing includes an investment from the strategic investor
referenced in the Company’s July 11, 2019 news release (the “Strategic Investor”) for
10,155,600 Units (the” Strategic Investor Shares”). Northern Lights management also
participated in the First Tranche Financing acquiring 890,000 Units.
Each Unit consists of one common share of the Company (a “Share”) and one full share
purchase warrant (each a “Warrant”). Each Warrant is exercisable into one Share at a
price of $0.075 per Share for 24 months following the date of issue.
With the exception of the Strategic Investor Shares, the Units and underlying securities
are subject to the usual four months and a day hold period in accordance with applicable
securities legislation and CSE requirements. The Strategic Investor Shares are subject
to a lock up agreement between the investor and the Company whereby the Strategic
Investor has undertaken not to sell, trade or otherwise dispose of the Shares or Warrants
subscribed for in the First Tranche Financing for an escrow period as follows: 40%
standard 4 month hold from date of issue, 30% 8 month hold from date of issue and the
remaining 30% subject to 12 month hold from the date of issue (the “Lock Up
Agreement”). The terms of the Lock Up Agreement have been revised from those
announced in the Company news release of July 11, 2019.
The proceeds from First Tranche Financing have been utilized to complete the 100%
purchase of the Secret Pass Gold Project in Arizona and for other working capital
purposes.
The Company has not paid any finders fees in relation to the First Tranche Financing.
Following the completion of the First Tranche Financing, Northern Lights will have
63,210,004 shares on issue. Upon completion of the First Tranche Financing, the
Strategic Investor will be control 11,455,600 shares of the Company or 18.1% of the total
issued share capital.
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The issue of the shares and warrants associated with the First Tranche Financing are
subject to the approval of the CSE and other regulatory bodies. The private placement
as announced on July 11, 2019 remains open and the Company anticipates closing in
Q1 2020.
For further information, please contact:
Albert Timcke, Executive Chairman and President
Email: [email protected]
Tel: +1 604 608 6163
Or
Jason Bahnsen, Chief Executive Officer
Email: [email protected]
Tel: +1 604 608 6163
About Northern Lights Resources Corp.
Northern Lights Resources Corp is a growth oriented exploration and development
company that is advancing two projects: The 100% owned, Secret Pass Gold Project
located in Arizona. where Northern Lights is 100% owner; and the Medicine Springs
silver-zinc-lead property located in Elko County Nevada where Northern Lights is earning
100%.
Northern Lights Resources trades under the ticker of “NLR” on the CSE. This and other
Northern Lights Resources news releases can be viewed at www.sedar.com and
www.northernlightsresources.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release
includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-
looking statements include, but are not limited to, statements with respect to: the terms and conditions of
the proposed private placement; use of funds; the business and operations of the Company after the
proposed closing of the Offering. Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable, are subject to kno wn and unknown risks,
uncertainties, and other factors which may cause the actual results and future events to differ materially
from those expressed or implied by such forward-looking statements. Such factors include, but are not
limited to: general business, economic, competitive, political and social uncertainties; delay or failure to
receive board, shareholder or regulatory approvals; and the uncertainties surrounding the mineral
exploration industry. There can be no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward looking statements. The Company disclaims any
intention or obligation to update or revise any forward -looking statements, whether as a result of new
information, future events or otherwise, except as required by law.