-- Posted Friday, 16 September 2011 | | Disqus
Northern Gold Mining ("Northern Gold" or the "Company") (TSX VENTURE:NGM, NTGMF.PK) is pleased to announce that it has completed a non-brokered private placement for aggregate gross proceeds of $10,870,471 subject to regulatory approval (the "Offering"). The Offering consists of the sale of 25,724,260 common shares comprised of 11,205,078 shares issued on a hard dollar basis at $0.40 per share for aggregate gross proceeds of $4,482,031, and 14,519,182 shares issued on a flow-through basis at $0.44 per share for aggregate gross proceeds of $6,388,440. Lead Investors include funds managed by Sprott Asset Management L.P.
The Company intends to use the net proceeds of the Offering for increased exploration activity on its Garrison Gold Property, in Northern Ontario and for working capital purposes. Northern Gold has 4 drills operating and a fifth being delivered. Three drills to be used for infill drilling and two for stepout drilling on the Garrcon Deposit. The deposit is open in both directions on strike and to depth. It is described in detail in a National Instrument 43-101 Technical Report filed on SEDAR on August 8, 2011 and is also available on the Company's website.
The securities issued pursuant to the Offering will be subject to a four month and one day statutory hold period.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons as defined under applicable securities laws unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Northern Gold Mining
Northern Gold Mining Inc. is a TSX Venture listed, publicly traded junior resource company based in Toronto, Ontario, dedicated to the discovery and development of high value mineral deposits in the proven mining camps of Kirkland Lake and Timmins in North Eastern Ontario. Northern Gold is focused on developing two advanced stage gold deposits on the Garrison Gold Property. The Property is located within the Abitibi greenstone belt along the Porcupine-Destor and the Munro Fault systems. The property hosts several gold mineralized showings in addition to the Jonpol and Garrcon Deposit advanced stage exploration targets, for each of which NI 43-101 compliant mineral resources have been calculated, and the less advanced 903 gold mineralized area. Historically diamond drilling by previous operators was completed in all three referenced areas. An NI 43-101 Technical Report was posted on SEDAR October 21, 2009 for Jonpol, and two for Garrcon were posted on SEDAR November 5, 2010 and August 8, 2011. The Garrison Gold Property has historical mining infrastructure at both the Jonpol and Garrcon Deposits, and currently producing mines are located near the property. On May 13, 2011, the Company completed its purchase of 100% ownership of the Garrison Gold Property from ValGold Resources Inc.
The technical aspects of this press release has been reviewed by Michael Gross M.S., P.Geol., Vice President Exploration for Northern Gold, who is the "Qualified Person" as defined by NI 43-101 for this project.
CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Martin R. Shefsky
Northern Gold Mining Inc.
President and CEO
416.366.7300
416.366.7301 (FAX)
mshefsky@northerngold.ca
www.northerngold.ca
-- Posted Friday, 16 September 2011 | Digg This Article
| Source: GoldSeek.com
