Sixty North closes $670,494 first tranche of financing

Executive Summary

• Sixty North Gold Mining Ltd. has closed the first tranche of its unit offering, raising gross proceeds of $670,494 from the sale of 6,095,400 units.
• The transaction is a related party transaction involving CEO David Webb, who subscribed for 1 million units, increasing his total ownership to 26.8% of issued and outstanding shares.
• Net proceeds are designated for the exploration and development of the Mon gold property in the Northwest Territories and general working capital.

Key Details

• Transaction Structure: The offering consists of units, with each unit comprising one common share and one common share purchase warrant.
• Gross Proceeds: $670,494.
• Units Sold: 6,095,400 units.
• Warrant Terms: Each warrant is exercisable to purchase one common share at an exercise price of $0.15 CAD for a period of 24 months from the closing date.
• Resale Restriction: Securities bear a legend restricting resale until March 7, 2026.
• Finder’s Fees: Paid $14,039.52 in cash and issued 127,632 finders' warrants (bearing the same terms as the investor warrants) on portions of the financing.
• Related Party Participation: CEO David Webb participated in the offering, subscribing for 1,000,000 units.
• Ownership Impact:
  • Mr. Webb’s acquisition represents 1.6% of the company's current issued and outstanding shares on a partially diluted basis.
  • Combined with previous holdings, Mr. Webb now owns or controls 16,077,790 shares, representing 26.8% of the company's current issued and outstanding shares.
  • Including warrants acquired with the new units, Mr. Webb holds warrants to acquire a further 1.3 million shares.
  • Assuming exercise of all warrants, total shareholdings would be 17,377,790 shares, representing 28.4% of the total issued shares on a partially diluted basis.
• Regulatory Exemptions: The company relied on exemptions from formal valuation and minority shareholder approval requirements under MI 61-101, as the fair market value of the related party transaction did not exceed 25% of the company's market capitalization.
• Use of Proceeds: Further exploration and development of the Mon gold property (Northwest Territories) and general working capital requirements.
• Future Plans: The company intends to close a second tranche of the offering shortly.

Notable Quotes

• None explicitly quoted in the text, though the technical content was reviewed and approved by Dr. D.R. Webb, PGeol, president and chief executive officer.