Another acquistion for NorthernThere is more value in Northern Financial than what some posters lead you to believe. Keep it up Vic.
TORONTO, CANADA – October 28, 2008 – Northern Financial Corporation (“Northern”) (TSX: NFC) announced its acquisition today of 824,500 common shares of High Desert Gold Corporation (“HDG”; TSX: HDG) representing approximately 2.05% of the total issued common shares of HDG. The HDG shares were acquired on the Toronto Stock Exchange at an average price of $0.177 per share. Combined with the HDG common shares previously owned, Northern now owns a total of 7,294,900 common shares, representing approximately 18.09% of the total issued common shares of HDG.
As previously disclosed, Northern believes the common shares of HDG are undervalued and wishes to assist in the enhancement of shareholder value. As such, Northern is pleased to announce its take-over bid (the “Offer”) for all of the issued and outstanding common shares of HDG (the “HDG Shares”) at a price of $0.19 per HDG Share. According to publicly available information, as at September 4, 2008, HDG has 40,318,500 issued and outstanding HDG Shares.
The Offer will represent a premium of approximately 31% to the volume weighted average trading price of the HDG Shares on the TSX for the 60 day period ended October 27, 2008.
The Offer will be conditional on, among other things, the deposit of that number of HDG Shares which, when taken together with the HDG Shares already owned by Northern, constitutes at least 50% of the HDG Shares plus one HDG Share. The Offer is also conditional on, among other matters, Northern determining in its sole judgment that there are minimum cash resources in HDG satisfactory to Northern at the expiry of the Offer. Northern has obtained a firm commitment to provide a credit facility in the amount of $6.4 million that will be relied upon to take up and pay for HDG Shares deposited and not withdrawn under the Offer.
The purpose of the Offer is to acquire all of the HDG shares not already owned by Northern.
Northern intends to commence the Offer on Thursday, October 30, 2008, at which time the Offer documents will be filed with applicable securities regulatory authorities and copies will be delivered to HDG. Northern intends to request a list of securityholders from HDG and, when received, Northern will send the Offer documents to HDG’s securityholders. Copies of the Offer documents will also be available on SEDAR at www.sedar.com.