TORONTO, May 12 /CNW/ - Northern Securities Inc. ("Northern
Securities"), a wholly-owned subsidiary of Northern Financial
Corporation (TSX:NFC) ("NFC"), is pleased to announce that it has been
engaged as agent, to raise gross proceeds of up to $5,000,000 in Units
(the "Offering") for Canadian Zinc Corporation (TSX:CZN) ("Canadian
Zinc"). Canadian Zinc's principal focus is to advance towards
production the Prairie Creek Mine, a zinc/lead/silver property located
in the Northwest Territories of Canada. This will be the fifth
financing that Northern Securities has led for Canadian Zinc, a client
relationship dating back to 2006.
The Units are priced at $0.90 and are comprised of one common share and
a half common share purchase warrant. Each whole warrant shall be
exercisable for one common share at an exercise price of $1.15 until 18
months from the date of closing. Canadian Zinc has granted Northern
Securities an over-allotment option to purchase up to an additional
$1,000,000 in Units.
Completion of the Offering is subject to certain conditions, including
approval by the Toronto Stock Exchange and other regulatory agencies.
Northern Securities and Canadian Zinc may invite other IIROC firms to
participate in a syndicate for the Offering. All securities issued
pursuant to the Offering will be subject to a four-month hold period.
The Offering is expected to be completed on or about May 31, 2011.
The net proceeds of the Offering will be used to advance the Canadian
Zinc's Prairie Creek Mine in the Northwest Territories of Canada
towards production and for working capital purposes.
Northern Securities will be paid a commission fee of 7% in cash and 7%
in broker warrants exercisable for Units for a period of 18 months from
the date of closing of the Offering.
About Northern Financial Corporation
Northern Financial Corporation wholly owns Northern Securities Inc., a
full service investment dealer that provides financial advisory
services to retail and institutional clients and investment banking
services to small capitalization companies.
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this news release. This press release may
contain forward-looking statements with respect to the NFC, its
operations, strategy, financial performance and condition. These
statements generally can be identified by use of forward looking words
such as "may", "will", ��expect", "estimate", "anticipate", intends",
"believe" or "continue" or the negative thereof or similar variations.
The actual results and performance of NFC discussed herein could differ
materially from those expressed or implied by such statements. Such
statements are qualified in their entirety by the inherent risks and
uncertainties surrounding future expectations. Important factors that
could cause actual results to differ materially from expectations
include, among other things, general economic and market factors,
competition, changes in government regulations and the factors
described under "Risk Factors" in the Management's Discussion and
Analysis and Annual Information Form of NFC which are available at
www.sedar.com. The cautionary statements qualify all forward-looking
statements attributable to NFC and persons acting on their behalf.
Unless otherwise stated, all forward-looking statements speak only as
of the date of this press release and NFC has no obligation to update
SOURCE Northern Financial Corporation
For further information:
Chairman and CEO
Northern Securities Inc.
Fax: (416) 644-0270