Northern Shield receives $1M from Labrador financing

Executive Summary

• Northern Shield Resources Inc. has received $1 million in gross proceeds from Labrador Gold Corp. following the release of escrowed funds from a previously announced strategic non-brokered private placement.
• The transaction involved the exchange of 16,666,667 subscription receipts for units of Northern Shield, with each unit comprising one common share and one common share purchase warrant.
• Labrador Gold retains a 10% equity interest in Northern Shield, granting it pre-emptive rights to future financings and the right to appoint a technical adviser for exploration activities.

Key Details

• Transaction Value: $1 million aggregate gross proceeds released to Northern Shield.
• Instrument: 16,666,667 subscription receipts exchanged for 16,666,667 units.
• Unit Composition: Each unit consists of one common share of Northern Shield and one common share purchase warrant.
• Warrant Terms: Each warrant entitles Labrador Gold to purchase one additional common share at an exercise price of $0.10 per share.
• Warrant Expiration: March 5, 2029.
• Escrow Conditions: Funds were released upon satisfaction of conditions including receipt of Labrador Gold shareholder and regulatory approval regarding Labrador Gold's change of business.
• Strategic Rights (for 10% Equity Interest):
  • Pre-emptive right to participate in future financings to maintain 10% equity position.
  • Right to appoint a technical adviser to guide exploration 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.

Notable Quotes

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