Toronto, Ontario–(Newsfile Corp. – April 11, 2017) – Northern Sphere Mining Corp. (CSE: NSM) (“Northern Sphere” or the “Company”) announced today that it has entered into an engagement letter with First Republic Capital Corporation (the “Lead Agent”) pursuant to which the Lead Agent has agreed to act as lead agent for the offer and sale, on a “best efforts” private placement basis, of up to 2,000,000 flow-through common shares of the Company (“Flow-Through Shares”) at a price of $0.50 per Flow-Through for aggregate gross proceeds to the Company of up to $1.0 million (the “Offering”).
The gross proceeds of the Offering will be used to fund the exploration and development of the Company’s mineral properties in Ontario, Canada. The gross proceeds received by the Company from the sale of the Flow-Through Shares will be used to incur “Canadian exploration expenses” that are “flow-through mining expenditures” (as such terms are defined in the Income Tax Act (Canada)) on the Company’s properties in Ontario which will be renounced to the subscribers with an effective date no later than December 31, 2017, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of Flow-Through Shares.
The Company has agreed to pay the Lead Agent a corporate finance fee of 1.0% of the gross proceeds of the Offering together with broker warrants (the “Broker Warrants”) equal to 1.0% of the Flow-Through Shares sold pursuant to the Offering. The Company has also agreed to pay the agents under the Offering a sale commission of 6.0% of the gross proceeds of the Offering together with Broker Warrants equal to 6.0% of the Flow-Through Shares sold pursuant to the Offering. Each Broker Warrant entitles the holder to acquire one ordinary common share of the company at a price of $0.50 per share for a period of 24 months from the closing of the Offering.
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