OTTAWA, Feb. 2, 2012 /CNW/ - Northern Shield Resources Inc. ("Northern Shield") [TSX-V: NRN] is pleased to announce that it has completed a non-brokered private placement (the "Private Placement") for gross proceeds of $2,936,000 by issuing 13,345,454 units ("Units") at $0.22 per Unit. Each Unit consists of one common share and one half of one common share purchase warrant. Each whole warrant is exercisable for one common share at a price of $0.40 per common share for a period of 24 months. The Units are subject to a hold period of 4 months from the date of issuance and the Private Placement is subject to the final approval of the TSX Venture Exchange.
The proceeds from the Private Placement will be primarily used for exploration on Northern Shield's Wabassi and Storm properties, and for general corporate purposes. The participants in the financing were HudBay Minerals Inc. (TSX: HBM) (NYSE: HBM) ("HudBay") and Anglo Pacific PLC (LSE: APF) of London, England. HudBay now owns approximately 9.9% of the issued and outstanding common shares on a non-diluted basis and 14.1% of the shares assuming full exercise of the warrants.
"In the past two weeks we have signed two significant deals: a letter of intent with Impala on our Idefix PGE property in Quebec and now an equity subscription agreement with HudBay to assist in funding exploration on our copper-zinc-silver VMS discoveries at Wabassi and Storm in northern Ontario. We are very pleased that the merits of these properties along with our persistent and scientifically driven exploration efforts have not gone un-noticed," says Northern Shield's President and CEO, Ian Bliss.
Crews are already on site preparing for ground geophysics and drilling at the Tempest claims within the Storm Claim Group.
Northern Shield is an innovative, results-driven Canadian company focused on Platinum Group Element (PGE) exploration in Canada and copper-zinc-silver exploration on its Wabassi and Storm properties in northern Ontario. Its mission is to create a successful mineral exploration company through technical excellence and efficient management, where success is measured by the identification and development of high-quality mineral exploration projects, which may ultimately be optioned, sold or developed for maximum return on investment. For further information on Northern Shield and its properties, please visit our website at www.northern-shield.com
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
For further information:
Northern Shield Resources Inc.
President and CEO
Tel.: (613) 232-0459
Fax: (613) 232-0760