Northern Uranium arranges $500,000 private placement

Executive Summary

• Northern Uranium Corp. completed a non-brokered private placement of 6,666,666 units at 7.5 cents per unit, raising gross proceeds of $500,000.
• The company simultaneously granted 590,000 stock options to employees or consultants, exercisable at 7.5 cents per share with a three-year term.
• Proceeds from the financing are designated for debt repayment, working capital, and property exploration, with a portion structured as flow-through shares.

Key Details

• Financing Structure: Non-brokered private placement of 6,666,666 units.
• Price: 7.5 cents per unit.
• Gross Proceeds: $500,000.
• Unit Composition: Each unit consists of one common share and one transferable warrant.
• Warrant Terms: Each warrant entitles the holder to purchase one additional share at an exercise price of 10 cents per share for a period of one year.
• Flow-Through Component: A portion of the units is issued on a flow-through basis, allowing holders to receive applicable tax benefits under the Income Tax Act (Canada).
• Use of Proceeds: Payment of debt, working capital, and property exploration.
• Finder's Fee: Payable on a portion of the private placement.
• Regulatory Status: Subject to acceptance for filing by the TSX Venture Exchange.
• Stock Option Grant: Total of 590,000 options granted.
• Option Exercise Price: 7.5 cents per share.
• Option Term: Three years.
• Option Conditions: Granted pursuant to the company's stock option plan and subject to applicable regulatory hold periods.