Business
Northern Iron Corp. and OMC Investments Limited Close Private Placement and Joint Venture
(via Thenewswire.ca) Private Placement and Joint Venture first announced on October 16 th...
About this update from Ares Strategic Mining Inc
[{"type":"text","content":"Northern Iron Corp. and OMC Investments Limited Close Private Placement and Joint Venture(via Thenewswire.ca)\n\n \nPrivate Placement and Joint Venture first announced on October 16th 2014 provide for:\n\n\n \n\n\n- Private placement of 19,048,000 common shares @ 0.05 cents for $952,400;\n\n\n\n- OMC Investments Limited to progressively earn equity in the project upon provision of additional capital as follows:\n\n\n\n- Phase 1: $8.2 million in funding for dewatering, drilling and environmental \n\n\n\n\n \npermitting;\n\n\n \n\n\n- Phase 2: $2.0 million in funding for a prefeasibility study; and\n\n\n\n- Phase 3: $20 million in funding for a feasibility study.\n\n\n\n \n \nVancouver, British Columbia, Canada / TNW-ACCESSWIRE / December 1, 2014 / Northern Iron Corp. (\"Northern Iron\" or the \"Company\") (TSX-V: NFE) (FRANKFURT: N8I) today announced that it has received TSX Venture Exchange approval for, and has closed the Private Placement and Joint Venture announced on October 16th 2014, with OMC Investments Limited, of Hong Kong (\"OMC\"). \n\n \n \nPursuant to the terms of the Investment Agreement (the \"Investment Agreement\"), Northern Iron has now issued 19,048,000 units to OMC (each a \"Unit\"), by way of private placement, at a price of $0.05 per Unit, for aggregate gross proceeds of $952,400 (the \"Private Placement\"). Each Unit consists of one common share in the capital of Northern Iron (each a \"Common Share\") and one Common Share purchase warrant, with each warrant (\"Warrant\") being exercisable by OMC for a period of three years from the date of closing of the Private Placement at a price of $0.05 per Common Share. The Private Placement is subject to the final acceptance of the TSX Venture Exchange, and all of the securities issued pursuant to the private placement are subject to a statutory four month and one day hold period expiring on March 29, 2015.\n\n \n \nBasil Botha, President and CEO of Northern Iron said; \"The Investment Agreement, Option Agreement, Subscription Agreement and Shareholders' Agreement entered into at closing are significant for the following reasons:\n\n\n \n\n\n- The Private Placement was completed at a significant premium to the 30 day volume weighted average price;\n\n\n\n- The initial tranche of capital from the Private Placement secures Northern Iron's short-term working capital n...