Northern Mining Closes Strategic Investment By GBS Gold International Inc.
NORTHERN MINING Explorations Ltd. (“MDN”)(TSX: MDN) is pleased to announce the closing of its previously announced strategic investment by GBS Gold International Inc. (TSX: GBS), pursuant to which MDN has issued 8,000,000 units for a total proceeds of $9.6 million or $1.20 per unit. Each unit consists of one MDN common share and one warrant to purchase one MDN common share at a price of $1.60 per share on or before October 5, 2008. Haywood Securities Inc. has received a finder’s fee of 400,000 Units.
“The agreement with GBS Gold represents more than a private placement in MDN. Indeed, it is a key strategic alliance to consolidate our growth objectives with our new partner as we launched an unprecedented exploration program in 2007 across our large mineral rights position in Tanzania and look for further growth opportunities” stated Paul-A. Girard, MDN’s Chairman of the Board.
As a result of this acquisition, GBS Gold holds approximately 9.83% of MDN and has the right to acquire a further 8.06% (based on current issued shares). GBS Gold also acquired the right to purchase the number of additional securities of MDN in any future offering of securities by MDN to maintain its shareholding percentage at that time.
The use of proceeds from the private placement is earmarked for prepayment of MDN’s project debt and working capital purposes.
Furthermore, MDN is please to announce that it has received since March 9, 2007, an amount of more than $2.4 million pursuant to the exercise of over 3.2 million outstanding warrants.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.