Northern Shield receives $1M from Labrador financing

Executive Summary

• Northern Shield Resources Inc. has received $1 million in gross proceeds from a strategic non-brokered private placement of subscription receipts to Labrador Gold Corp.
• The funds were released from escrow following the satisfaction of conditions, including shareholder and regulatory approval for Labrador Gold's change of business.
• Labrador Gold received 16,666,667 units (each consisting of one common share and one warrant) in exchange for the subscription receipts, granting them a 10% equity interest and specific rights including pre-emptive financing rights and the appointment of a technical adviser.

Key Details

• Gross Proceeds: $1,000,000 CAD.
• Investor: Labrador Gold Corp.
• Instrument: 16,666,667 subscription receipts exchanged for 16,666,667 units.
• Unit Composition: Each unit consists of one common share of Northern Shield Resources Inc. and one common share purchase warrant.
• Warrant Terms:
  • Exercise Price: $0.10 per warrant share.
  • Expiration Date: March 5, 2029.
• Equity Interest: Labrador Gold retains a 10% equity interest in Northern Shield.
• Rights Granted to Labrador Gold (while retaining 10% interest):
  • Pre-emptive right to participate in future financings to maintain equity interest.
  • Right to appoint a technical adviser to guide exploration activities on Northern Shield's properties.
• Use of Proceeds: Further exploration programs (geophysics and diamond drilling) at the Root & Cellar property, exploration on newly acquired claims, and general working capital.
• Lock-up Period: Common shares and underlying warrant shares are subject to a statutory hold period and a voluntary lock-up ending July 5, 2026.
• Escrow Conditions: Release was conditional upon receipt of Labrador Gold shareholder and regulatory approval regarding Labrador Gold's change of business.

Notable Quotes

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