OTTAWA, April 7, 2016 /CNW/ - Northern Shield Resources Inc. ("Northern Shield" or the "Company") [TSX-V: NRN] is pleased to announce that it has completed the first tranche of a non-brokered private placement (the "Private Placement") of 10,591,667 units ("Units") at a price of $0.03 per Unit for aggregate gross proceeds of $317,750. Each Unit is comprised of one common share in the capital of Northern Shield (a "Common Share") and one half of one Common Share purchase warrant (a "Warrant"). Each whole warrant is exercisable for one Common Share at a price of $0.05 per share until April 7, 2017 provided that should the Common Shares trade on the TSX Venture Exchange (the "TSXV") for 20 consecutive trading days at a price equal to or more than $0.10, the Warrants will expire 30 days later. The Common Shares and Warrants underlying the Units are subject to a four month hold period from the date of issuance and the Private Placement remains subject to the final approval of the TSX Venture Exchange. SIDEX, a Quebec institutional fund subscribed for $100,000 of the private placement under the "Field Action 2016" program. The mission of SIDEX is to invest in companies engaged in mineral exploration in Quebec in order to diversify Quebec's mineral base and open new territories. Field Action 2016 is a $3-Million financing program launched by SIDEX for the third year in a row to encourage junior mineral exploration companies to pursue field work in Québec, hire young professionals, employ service companies, and make new discoveries. Northern Shield appreciates the continued support of its projects from SIDEX. A second tranche is expected to close next week.
A cash fee of $4,860 was paid, and 93,000 Warrants were issued, to certain finders in connection with the Private Placement. Each such Warrant is exercisable to acquire one Common Share at a price of $0.05 per share until April 7, 2017.
Proceeds from the Private Placement will be used to conduct further sampling at the Company's 100% owned Huckleberry project ("Huckleberry") in the Labrador Trough region of northern Quebec (100 kilometres north of Schefferville) as soon as practical. Northern Shield discovered significant Cu-Ni-PGE mineralization at Huckleberry in 2015 with 97 samples averaging 1.0% Cu, 0.2% Ni and 0.72 g/t PGE+Au. Huckleberry is being explored as a segregated magmatic deposit whereby the copper has separated from the nickel during cooling. The discovery of a xenolith hosting nickel-bearing semi-massive sulphides suggests that the nickel-rich portion may underlie the copper mineralization. "The complexity of the geology and segregated nature of the mineralization makes a strong argument for comparison to known giant ore deposits," explains Northern Shield Chief Geologist, Christine Vaillancourt.
Exploration will also be conducted this summer on Northern Shield's recently acquired Séquoi Property ("Séquoi") located 10 kilometres east of Huckleberry. Séquoi covers a large multi-lobed magnetic anomaly that Northern Shield interprets to be a flat-lying, saucer-shaped mafic-ultramafic intrusion, perhaps related to Huckleberry and part of the feeder system to the sills of the Labrador Trough. Within this anomaly are small pockets of higher magnetism, some of which coincide with electro-magnetic anomalies identified from a mid-1980s, government sponsored airborne survey. Exhaustive analysis of the historic lake bottom sediment sample results and glacial history of the area provides for a compelling case to be made that Séquoi lies at the head of a very large and distinct Ni-Cu-PGE dispersion train that dominates the southern Labrador Trough (see website for details).
The programs at Huckleberry and Séquoi will be overseen by Christine Vaillancourt, P. Geo., a Qualified Person under National Instrument 43-101.
Northern Shield Resources Inc. is a Canadian-based mineral exploration company built around its platinum group element (PGE) expertise, which forms the basis of its exploration in eastern Canada.
Forward-Looking Statements Advisory
This news release contains statements concerning the exploration plans, results and potential Cu-Ni-PGE and other mineralization at the Company's southern Labrador Trough properties, geological, and geometrical analyses of the southern Labrador Trough properties and comparisons of the properties to known Cu-Ni-PGE deposits, and other expectations, plans, goals, objectives, assumptions, information or statements about future events (including the use of proceeds from the Private Placement), conditions, results of exploration or performance that may constitute forward-looking statements or information under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect.
Although Northern Shield believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward‑looking statements because Northern Shield can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Northern Shield and described in the forward‑looking statements or information. These risks and uncertainties include, but are not limited to, risks associated with geological, geometrical and geophysical interpretation and analysis, the ability of Northern Shield to obtain financing, equipment, supplies and qualified personnel necessary to carry on exploration and the general risks and uncertainties involved in mineral exploration and analysis.
The forward-looking statements or information contained in this news release are made as of the date hereof and Northern Shield undertakes no obligation to update publicly or revise any forward‑looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Northern Shield Resources Inc.
For further information: Northern Shield Resources Inc.: Ian Bliss, President and CEO, Tel.: (613) 232-0459, Fax: (613) 232-0760, firstname.lastname@example.org