Northern Shield Closes First Tranche of Private Placement for $1,278,796 /NOT FOR DISTRIBUTION TO
Northern Shield Closes First Tranche of
Private Placement for $1,278,796
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
OTTAWA
,
Dec. 9, 2019
/CNW/ - Northern Shield Resources Inc. ("Northern Shield" or the
"Company") (TSXV: NRN) is pleased to announce that it has closed the first tranche of a multi-
faceted, non-brokered private placement financing of 23,742,594 common shares on a non-flow-
through and flow-through basis for total proceeds of
$1,278,796
(the "
Offering
")
.
The initial tranche was comprised of i) 14,575,926 units at
$0.05
per unit for aggregate gross
proceeds of
$728,796
. Each unit (a "
Unit
") consists of one common share in the capital of the
Company (a "
Common Share
") and one-half of one Common Share purchase warrant (a
"
Warrant
"). Each whole Warrant is exercisable for one Common Share at a price of
$0.10
per
Common Share within 24 months of the closing of the Offering; and ii) 9,166,668 Common Shares
issued on a flow-through basis within the meaning of the
Income Tax Act
(
Canada
) (each a "
Flow-
Through Share
") at a price of
$0.06
per Flow-Through Share, for aggregate gross proceeds of
$550,000
. Proceeds from the offering will be used for working capital purposes and to incur eligible
exploration expenses at the Shot Rock and Root & Cellar Properties.
The Offering is subject to final approval of the TSX Venture Exchange. The Company paid an
aggregate of
$40,000
in finders fees in connection with this tranche. The Company anticipates
closing a second tranche next week. Securities issued under the Offering are subject to restrictions
on resale for a period of four months from the date of closing.
About Northern
Northern Shield Resources Inc. is a Canadian-based company focused on generating high-quality
exploration programs with experience in many geological terranes. It is known as a leader in
executing grass roots exploration program for Ni-Cu-PGEs and utilizing expertise and innovation
toward working on other deposit types. Seabourne Resources Inc. is a wholly-owned subsidiary of
Northern Shield focussing on epithermal gold and related deposits in
Atlantic Canada
and elsewhere.
None of the securities sold in connection with the Offering will be registered under the
United States Securities Act of 1933, as amended, and no such securities may be offered or
sold in
the United States
absent registration or an applicable exemption from the
registration requirements. This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking information which is subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to differ from those
projected in the forward-looking statements. Forward looking statements in this press release but
are not limited to, statements with respect to the expectations of management regarding the
proposed Offering, the expectations of management regarding the use of proceeds of the Offering,
closing conditions for the Offering, the likelihood of closing a second tranche and TSX Venture
Exchange approval of the proposed Offering. These forward-looking 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 in the forward-looking information. Risks that could change or
prevent these statements from coming to fruition include the Company may not complete the
Offering on terms favorable to the Company or at all; the TSX Venture Exchange may not provide
final approval of the Offering; the proceeds of the Offering may not be used as stated in this news
release; the funds raised from the sale of the Flow-Through Shares may not be renounced in
favour of the holders; the Company ma be unable to satisfy all of the conditions to the closing. The
forward-looking information contained herein is given as of the date hereof and the Company
assumes no responsibility to update or revise such information to reflect new events or
circumstances, except as required by law.
SOURCE
Northern Shield Resources Inc.
View original content:
http://www.newswire.ca/en/releases/archive/December2019/09/c9012.html
%SEDAR: 00007505E
For further information:
Northern Shield Resources Inc., Ian Bliss, President and CEO, Tel.: (613)
232-0459, Fax: (613) 232-0760, [email protected]
CO: Northern Shield Resources Inc.
CNW 08:30e 09-DEC-19