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Northisle Announces Closing of Oversubscribed $7.1M Private Placement

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Northisle Copper and Gold Inc. (TSX-V: NCX)  is pleased to announce that it has closed the Company’s previously announced non-brokered private placement.


Pursuant to the Placement, the Company issued 21,473,243 common shares of the Company consisting of: (i) 2,240,780 Common Shares at a price of C$0.262 per Common Share (the “NFT Offering”); (ii) 11,329,472 Common Shares that qualify as “flow-through shares” for purposes of the Income Tax Act (Canada) at a price of $0.31 per Common Share; and (iii) 7,902,991 Common Shares that qualify as “flow-through shares” for purposes of the Tax Act at a price of $0.38 per Common Share for gross proceeds to the Company of approximately C$7,102,357. The Common Shares issued pursuant to the Placement are subject to a four month hold period in accordance with applicable Canadian securities laws.


The gross proceeds from the FT Offering and Charity FT Offering will be used to incur expenses that are eligible “Canadian exploration expenses” and “flow-through mining expenditures” within the meaning of subsection 66.1(6) and subsection 127(9) of the Tax Act, respectively, and will also be eligible for British Columbia’s 20% flow-through share tax credit. The net proceeds from the NFT Offering will be used to advance the North Island Project and for general working capital purposes.


The Company’s 2021 exploration program has now commenced, with drill pad construction complete and the drill in place at the Pemberton Hills target on the North Island Project. In parallel, the Company is continuing the planning for critical trade-off studies, environmental baseline work and other long-lead items in support of determining the scope of a pre-feasibility study in H2 2021. Northisle will continue to proactively engage with First Nations, local communities, government and key project stakeholders in support of the responsible development of the project.


Dale Corman, a director of the Company, Sam Lee, a director and officer of the Company and Nicholas Van Dyk, an officer of the Company participated in the Placement by purchasing an aggregate of 1,065,421 Common Shares. Accordingly, the Placement constitutes a related-party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of any securities issued to nor the consideration paid by Dale Corman, Sam Lee or Nicholas Van Dyk would exceed 25% of the Company’s market capitalization. The Company did not file a material change report more than 21 days before the expected closing of the Placement as the details of the Placement and the participation therein by related parties of the Company were not settled prior to the closing of the Placement and the Company wished to close on an expedited basis for sound business reasons.


In connection with the Placement and in accordance with the rules and policies of the TSX Venture Exchange, finder’s fees totaling approximately C$206,226 in cash were paid to PI Financial Corp., Agentis Capital Partners and Red Cloud Securities Inc.


About Northisle


Northisle Copper and Gold Inc. is a Vancouver based company whose mission is to become Canada’s leading sustainable mineral resource company for the future.  Northisle owns the North Island Project, which is one of the most promising copper and gold porphyry deposits in Canada. The North Island Project is located near Port Hardy, British Columbia on a 33,149-hectare block of mineral titles 100% owned by Northisle stretching 50 kilometres northwest from the now closed Island Copper Mine operated by BHP Billiton. The Company recently completed a preliminary economic assessment which demonstrated the potential of the Red Dog and Hushamu deposits and is aggressively advancing its exploration and development program in 2021.


Posted March 18, 2021

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