Business
Northern Shield Resources Closes Second Tranche of Financing
OTTAWA, ON, Aug. 4, 2023 /CNW/ - Northern Shield Resources Inc. ("Northern Shield" or the "Company") (TSXV: NRN) is pleased to announce that it has closed the s
About this update from Northern Shield Resources Inc.
[{"type":"text","content":" OTTAWA, ON, Aug. 4, 2023 /CNW/ - Northern Shield Resources Inc. (\"Northern Shield\" or the \"Company\") (TSXV: NRN) is pleased to announce that it has closed the second tranche of a non-brokered, private placement of 3,152,000 units (\"Flow-Through Units\") for total proceeds of $204,880 (the \"Offering\"). The second tranche Offering was comprised of 3,152,000 Units at a price of $0.065 per Flow-Through Unit for aggregate gross proceeds of $204,880 with each Flow-Through Unit consisting of one common share in the capital of the Corporation (\"Common Share\") issued on a flow-through basis within the meaning of the Income Tax Act (Canada) and one-half of one Common Share purchase warrant (an \"FT Warrant\"). Each whole FT Warrant is exercisable for one Common Share at a price of $0.125 per Common Share within 24 months of the closing. Proceeds from the Offering will be used primarily to incur eligible exploration expenses at the Root & Cellar Property. The Company paid an aggregate of $12,000.30 in finders fees and issued 215,390 finders warrants in connection with the Offering. A director of the Company acquired 75,000 Units for proceeds of approximately $4,875. The issuance of securities to an insider 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 (\"MI 61-101\"). The Company has relied on exemptions from 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 was not filed more than 21 days prior to the closing of the Offering as the level of insider participation was not known at that time. 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. None of...