Mr. Thomas Morris reports Mr. Thomas Morris reports
ERIC SPROTT COMPLETES $2 MILLION STRATEGIC INVESTMENT IN NORTHERN SUPERIOR AS PART OF THE FIRST CLOSING OF NORTHERN SUPERIOR'S $4.5 MILLION OFFERING OF UNITS AND FLOW THROUGH SHARES
Northern Superior Resources Inc. has completed the first closing of its $4.5-million non-brokered private placement of units and flow-through shares announced on Feb. 13, 2017. In connection with the first closing, the company issued 58.2 million units at five cents per unit and 3.4 million FT shares at 5.5 cents per share to investors for gross proceeds of $3,097,000. The company anticipates closing the remaining balance of the offering within the next few days.
Each unit sold in connection with the first closing consists of one common share of the company and one non-transferable share purchase warrant of the company exercisable at a price of 7.5 cents per share for a period of two years from the date of the first closing.
As part of the first closing, Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 40 million units ($2-million), making him the indirect owner of approximately 13.7 per cent of the issued and outstanding common shares of the company on a non-diluted basis, and approximately 24.2 per cent assuming only the warrants acquired by him are exercised. The above percentages are calculated based on 291,177,968 common shares of the company issued and outstanding after giving effect to the first closing. Prior to the first closing, Mr. Sprott owned no shares of the company, directly or indirectly. No commission, dealer or finders' fees were paid in connection with the units acquired by 2176423 Ontario.
The units were acquired by Mr. Sprott through 2176423 Ontario for investment purposes. Mr. Sprott has a long-term view of the investment, and may acquire additional securities of the company either on the open market or through private acquisitions or sell securities of the company either on the open market or through private dispositions in the future, depending on market conditions, reformulation of plans and/or other relevant factors. A copy of 2176423 Ontario's early warning report will appear on the company's profile on SEDAR and may also be obtained by calling 416-362-7172.
Dr. Thomas F. Morris, president and chief executive officer, commented: "Northern Superior is tremendously thankful for the financial support shown by Mr. Sprott as well as the other investors who are participating in the offering. We are very much looking forward to applying this capital to what are truly excellent exploration opportunities in the company's 100-per-cent-owned Ti-pa-haa-kaa-ning and Croteau Est properties."
In connection with the balance of the first closing, the company issued an additional 18.2 million units for gross proceeds of $910,000, as well as 3.4 million FT shares for gross proceeds of $187,000 of FT funds. Cash commissions in the aggregate amount of $41,250 (before applicable taxes) are payable in connection with the balance of the first closing of the offering to each of Foster & Associates ($1,250), Felix Cirelli ($5,000), Trimark Trading ($25,000) and Niles Baranger ($10,000).
The common shares forming part of the units, the FT shares, the warrants and any common shares issued upon exercise of the warrants issued in connection with the first closing of the offering are subject to a hold period under applicable securities laws, which expires on July 3, 2017. The offering received conditional acceptance from the TSX Venture Exchange on Feb. 15, 2017.