Nord Precious Metals closes $4-million financing

Executive Summary

• Nord Precious Metals Mining Inc. has closed a fully subscribed Listed Issuer Financing Exemption (LIFE) offering and a concurrent non-brokered private placement, raising aggregate gross proceeds of $4,000,000.
• The financing consists of 33,333,333 total units issued at $0.12 per unit, comprising common shares and warrants exercisable at $0.155 for five years.
• Proceeds are designated for testing tailings recovery, pilot-scale testing of the Re-2Ox process, diamond drilling at the Castle East property, and general working capital.

Key Details

• Total Gross Proceeds: $4,000,000 (subject to final TSX Venture Exchange acceptance).
• LIFE Offering Component:
  • Units Issued: 13,056,041 units.
  • Price: $0.12 per unit.
  • Gross Proceeds: $1,566,724.
• Non-Brokered Private Placement Component:
  • Units Issued: 20,277,292 units.
  • Price: $0.12 per unit.
  • Gross Proceeds: $2,433,275.
• Instrument Structure: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms:
  • Exercise Price: $0.155 per share.
  • Duration: Five years following closing.
• Hold Periods:
  • Private Placement Units: Four months and one day (per Canadian securities laws).
  • Finder Warrants and Adviser Shares: Four months and one day.
• Finder Compensation (Research Capital Corp.):
  • Cash Fee: $226,256.
  • Finder Warrants: 1,885,467 non-transferable warrants.
  • Finder Warrant Exercise Price: $0.12 per share.
  • Finder Warrant Duration: Five years from closing.
• Advisory Fees:
  • Cash Work Fee: $25,000.
  • Adviser Shares: 175,000 shares issued at a deemed price of $0.12 per share.
• Insider Participation:
  • Insiders purchased 1,533,333 units in the private placement.
  • Transaction classified as a related party transaction under Multilateral Instrument 61-101.
  • Exemptions relied upon: Sections 5.5(a) and 5.7(a) of MI 61-101 (valuation and minority shareholder approval).
• Use of Proceeds:
  • Test tailings recovery via Ontario ministry’s unique recovery permit.
  • Continue pilot-scale testing of the Re-2Ox process with SGS Lakefield.
  • Diamond drilling on the Castle East property to test new targets and update resource estimates.
  • General working capital.
• Jurisdiction: Offered in all Canadian provinces (except Quebec) and qualifying jurisdictions including the United States.

Notable Quotes

• None explicitly quoted in the text; however, the company states its primary business objective is to "increase the silver resource at the Castle East property and identify potential economics of tailings processing and metal recovery from tailings."