55 North to close $3.58M first tranche of placement

Executive Summary

• 55 North Mining Inc. closed the first tranche of its non-brokered private placement financing, raising gross proceeds of approximately $3,587,000.
• The tranche consisted of the issuance of 7,174,000 common shares at a price of $0.50 per share.
• Proceeds are designated for property payments, the commencement of drilling programs at the Last Hope project, and general working capital.

Key Details

• Transaction Structure: Non-brokered private placement financing.
• Gross Proceeds: Approximately $3,587,000.
• Shares Issued: 7,174,000 common shares.
• Price Per Share: $0.50.
• Finder's Compensation:
  • 300,240 common shares issued to preapproved finders.
  • 150,120 finders' warrants issued to preapproved finders.
• Warrant Terms: Each warrant is exercisable to acquire one common share at an exercise price of $0.50 for a period of 24 months from issuance.
• Use of Proceeds: Financing property payments, commencement of drilling programs, and general working capital/corporate overhead.
• Post-Closing Share Count: Approximately 32.0 million common shares issued and outstanding.
• Future Plans: The company expects to complete the balance of the offering (up to 12 million shares total) in one or more additional closings in the near term.
• Operational Update: The company is positioned to commence its winter drill program at the Last Hope gold project.

Notable Quotes

• "We are very pleased with the strong investor support for this financing," said Bruce Reid, chief executive officer of 55 North Mining. "With this first tranche complete, the company is well positioned to commence its winter drill program at Last Hope."