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Northern Shield Closes Final Tranche of Private Placement for Aggregate Total of $1,724,836

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Northern Shield Closes Final Tranche of Private Placement for Aggregate Total of $1,724,836






Northern Shield Resources Inc. (TSX-V: NRN) is pleased to announce that it has closed the final tranche of a multi-faceted, non-brokered private placement financing for proceeds of $446,040 bringing the aggregate total from the first and second tranche to $1,724,836 .  The Offering size was increased from $1,325,000 to accommodate strong demand.


The final tranche was comprised of: i) 600,000 units at $0.05 per Unit for aggregate gross proceeds of $30,000, with each Unit comprised of one common share in the capital of the Company and one-half of one Common Share purchase warrant; ii) 3,500,000 flow-through units at $0.07 per unit for aggregate gross proceeds of $245,000, with each Flow-Through Unit comprised of one Common Share issued on a flow-through basis within the meaning of the Income Tax Act (Canada) and one-half of one Warrant; and ii) 2,850,670 Flow-Through Shares at a price of $0.06 per share, for aggregate gross proceeds of $170,040.  Each whole Warrant is exercisable for one Common Share at a price of $0.10 per share for a period of 24 months from closing.  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.


An insider of the Company acquired 2,175,926 Units for proceeds of approximately $108,796 in the first tranche  The issuance of securities to insiders pursuant to the Offering (the “Insider Participation”) constitutes a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101.  The Company has relied on exemptions to the formal valuation and minority shareholder approval requirements contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the Insider Participation as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the Insider Participation, insofar as it involved related parties, exceeded 25% of the Company’s market capitalization.  Further details will be included in a material change report to be filed by the Company in due course. The material change report will not be filed more than 21 days prior to the closing of the Offering as the level of insider participation was not known at that time.


The Offering is subject to final approval of the TSX Venture Exchange. The Company paid an aggregate of $9,540 in finders fees and issued 157,500 finders Warrants in connection with this tranche. Securities issued under the Offering are subject to restrictions on resale for a period of four months from the date of closing.


About Northern Shield

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.


Posted December 17, 2019

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