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Northisle Copper and Gold Announces Closing of C$7 Million Non-Brokered Private Placement
VANCOUVER, British Columbia / Jun 23, 2022 / Business Wire / Northisle Copper and Gold Inc. (TSX-V: NCX) (“Northisle” or the “Company”) is pleased to announce t
About this update from Northisle Copper And Gold Inc.
[{"type":"text","content":"VANCOUVER, British Columbia / Jun 23, 2022 / Business Wire / Northisle Copper and Gold Inc. (TSX-V: NCX) (“Northisle” or the “Company”) is pleased to announce that it has closed its previously announced non-brokered private placement consisting of: (i) 1,615,000 flow-through common shares of the Company (the “Common Shares”) at a price of $0.31 per Common Share (the “FT Offering”) and (ii) 16,249,500 flow-through Common Shares at a price of $0.40 per Common Share (the “Charity FT Offering” and together with the FT Offering, the “Offering”) for gross proceeds to the Company of C$7,000,450. See press releases dated June 2, 2022 and June 3, 2022 for additional details. The gross proceeds from the FT Offering and Charity FT Offering will be used to incur expenses (“qualifying expenses”) that are eligible “Canadian exploration expenses” within the meaning of subsection 66.1(6) of the Tax Act and will also be eligible for the recently announced federal 30% Critical Metals Exploration Tax Credit, and British Columbia’s 20% flow-through share tax credit. Michael Gentile has participated in the offering on a pro rata basis to maintain his current 9.9% partially diluted position in Northisle. In addition, certain directors and officers of the Company, specifically, Dale Corman, Sam Lee, Nicholas Van Dyk and Ian Chang (collectively, the “Interested Persons”) purchased or acquired direction and control over an aggregate of 1,105,000 Common Shares under the FT Offering. The Interested Persons are each considered a “related party” of Northisle and the sale of Common Shares under the Offering to the Interested Persons constitutes a “related party transaction” within the meaning of MI 61-101. Following completion of the Offering, the Interested Persons hold 24,679,121 Common Shares. The “related party” portion of the Offering was exempt from the minority approval requirement of Section 5.6 and the formal valuation requirement of Section 5.4 of MI 61-101 as neither the fair market value of the “related party” portion of the Offering, nor the fair market value of the consideration of the “related party” portion of the Offering, exceeded 25% of Northisle’s market capitalization. A material change report in connection with the Offering will be filed less than 21 days before the closing of the Offering. This shorter period was reasonable and necessa...