Northern Shield Receives $1M Proceeds from LabGold Subscription Receipt Financing

Executive Summary

• Northern Shield Resources received the full $1,000,000 gross proceeds from its strategic non‑brokered private placement of 16,666,667 subscription receipts with Labrador Gold Corp. after escrow release conditions were satisfied.
• Each subscription receipt was exchanged for one unit (one common share plus one warrant), giving LabGold a pre‑emptive right to maintain a 10% equity stake and the ability to appoint a technical advisor.
• The proceeds will fund additional exploration (geophysics, diamond drilling) at the Root & Cellar Property, newly acquired claims, and general working capital.

Key Details

• Escrow Funds: $1,000,000 aggregate gross proceeds released from escrow.
• Subscription Receipts: 16,666,667 receipts issued to LabGold; each receipt exchanged for one unit (1 common share + 1 warrant).
• Warrant Terms: Each warrant allows LabGold to purchase an additional common share at $0.10 per share, exercisable until March 5 2029.
• Equity Retention Rights: As long as LabGold holds a ≥10% equity interest, it receives:
• Pre‑emptive right to participate in future financings to maintain its stake.
• Right to appoint a technical advisor for exploration activities.
• Use of Proceeds: Allocation to further exploration programs (geophysics, diamond drilling) at the Root & Cellar Property, work on newly acquired claims, and general working capital.
• Lock‑up/Hold Period: Units are subject to a statutory hold period and a voluntary lock‑up ending July 5 2026; resale governed by applicable securities legislation.
• Regulatory Note: Securities not registered under U.S. law; cannot be offered or sold to U.S. persons absent exemption.

Notable Quotes

(No direct quotes were provided in the release.)