Business
Northern Abitibi Closes Private Placement
CALGARY, ALBERTA--(Marketwired - March 23, 2016) - NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMP
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[{"type":"text","content":"CALGARY, ALBERTA--(Marketwired - March 23, 2016) - NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW. Northern Abitibi Mining Corp. (\"Northern Abitibi\") (TSX VENTURE:NAI) announces that it has closed a brokered private placement with IBK Capital Corp. for 23,000,000 common shares at $0.01 per share for gross proceeds of $230,000. A cash commission of $20,700 (9% of gross proceeds) and 2,300,000 Broker's Warrants were issued to eligible agents (10% of total shares issued). Each Broker's Warrant entitles the holder to purchase one common shares and is exercisable for five years at $0.05 per share. The securities issued are subject to a hold period until July 24, 2016. One director of Northern Abitibi subscribed for 500,000 shares. The terms of the private placement are according to the TSX Venture Exchange (\"Exchange\") Discretionary Waivers of $0.05 Minimum Pricing Requirement Bulletin dated April 7, 2014 and are subject to Exchange approval. The funds from the private placement will be used for the following working capital requirements: Corporate Administrative Expenses Professional Fees (Audit, Legal, Accounting) (1) $51,000 Director Fees (2) 4,000 Shareholder expense (AGM/Stock Transfer/Filing Fees) 31,000 Insurance and premises 18,000 Share Issue costs (Agent, TSX-V) 10,000 Project Expenditures 10,000 Consultants and Executive compensation (3) 10,000 Administrative and office costs 10,000 Financing Costs 25,000 Other Working Capital Purposes 61,000 Total $230,000 (1) $12,000 proposed payable to related party (2) $4,000 proposed to two related parties (3) $10,000 proposed to related party Financial Advisory Agreement Northern Abitibi has engaged IBK Capital Corp. to act as its financial advisor to advise and assist the Company in identifying business opportunities and assist in any future negotiations or transactions. In the event of a successful transaction IBK Capital Corp. would be entitled to a transaction fee for professional services along with reasonable expenses. The term of the agreement is for two years, with either party having the right to terminate the agreement early. Dr. Shane Ebe...