Northern Shield Resources Inc. (TSX-V: NRN) is pleased to announce that it has closed a multi-faceted, non-brokered private placement financing of 17,938,461 units for total proceeds of $2,692,000.
The Offering comprises i) 9,938,461 Units at $0.13 per Unit for aggregate gross proceeds of $1,292,000, with each Unit consisting of one common share in the capital of the Company and one-half of one Common Share purchase warrant; and, ii) 8,000,000 Units at $0.175 per Unit for aggregate gross proceeds of $1,400,000, with each Unit consisting of one Common Share and one-half of one Warrant both issued on a flow-through basis within the meaning of the Income Tax Act (Canada). Each whole Warrant is exercisable for one Common Share at a price of $0.20 per share within 24 months of the closing of the Offering. Proceeds from the Offering will be used primarily for working capital purposes and to incur eligible exploration expenses at the Shot Rock and Root & Cellar properties.
Crescat Capital LLP subscribed for 13,230,769 of the offered Units. Crescat is a global macro asset management firm headquartered in Denver, Colorado. In connection with the acquisition of Units by Crescat, the Company has granted Crescat, for as long as Crescat and its affiliates hold at least 3% of the Company’s Common Shares (on a non-diluted basis), a right to participate in future equity financings of the Company so as to maintain Crescat’s pro-rata ownership of the Company.
“We are pleased to welcome Crescat as a significant shareholder of Northern Shield. Crescat is a US based, long term investor, that brings financial and technical expertise to Northern Shield as well as exposure to the US market. We feel that Crescat’s value driven equity model fits well with our model-driven approach to exploration. The partnership allows us to simultaneously tap into the geological expertise of Dr Quinton Hennigh and the financial acumen of Crescat – a rare opportunity. We look forward to working together.”
– Northern Shield President and CEO, Ian Bliss
Securities issued under the Offering are subject to restrictions on resale for a period of four months from the date of closing. The Offering is subject to final approval of the TSX Venture Exchange.
About Crescat Capital LLC
Crescat is a global macro asset management firm headquartered in Denver, Colorado, which deploys tactical investment themes based on proprietary value-driven equity and macro models. Crescat’s investment goals are to provide industry leading absolute and risk-adjusted returns over complete business cycles with low correlation to common benchmarks and they apply their investment process across a mix of asset classes and strategies. Crescat is taking activist stakes in the precious metals exploration industry today as one of its key macro themes.
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 programs using a model driven approach. Seabourne Resources Inc. is a wholly-owned subsidiary of Northern Shield focussing on epithermal gold and related deposits in Atlantic Canada.
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We acknowledge the [financial] support of the Government of Canada.