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 Northern Shield Unit (one common share plus one warrant), giving LabGold the right to purchase additional shares at $0.10 per share until March 5 2029 and granting it pre‑emptive financing rights and a technical advisor seat while it holds ≥10% equity.
• The proceeds will fund further exploration (geophysics, diamond drilling) on the Root & Cellar Property and newly acquired claims, as well as general working capital.

Key Details

• Escrow Funds: $1,000,000 aggregate gross proceeds released from escrow.
• Subscription Receipts Issued: 16,666,667 receipts (each convertible into one Unit).
• Unit Composition: 1 common share of Northern Shield + 1 common share purchase warrant.
• Warrant Exercise Price: $0.10 per Warrant Share; exercisable until March 5 2029.
• LabGold Rights While Holding ≥10% Equity:
• Pre‑emptive right to participate in future financings to maintain its equity stake.
• Right to appoint a technical advisor for exploration activities.
• Use of Proceeds:
• Geophysical surveys and diamond drilling at the Root & Cellar Property.
• Exploration on newly acquired claims in the region.
• General working capital.
• Lock‑up/Statutory Hold Period: Units subject to a statutory hold period and voluntary lock‑up ending July 5 2026.
• Regulatory Notes: Securities not registered under U.S. securities laws; offering not available to U.S. persons absent exemption.

Notable Quotes

(No direct quotes were provided in the release.)