NFX Gold Inc.
TSX VENTURE : NFX

NFX Gold Inc.

November 17, 2006 11:22 ET

NFX Gold Inc. Announces $300,000 Financing with MineralFields Group

TORONTO, ONTARIO--(CCNMatthews - Nov. 17, 2006) -

Not for dissemination in the United States of America

NFX GOLD INC. (TSX VENTURE:NFX)(the "Company" or "NFX") announced today that a non-brokered private placement (the "Private Placement") of 428,571 Flow-Through Units (the "Units") to be issued on a "flow-through" basis under the Income Tax Act (Canada) at a price of 70 cents per Unit, for gross proceeds to the Company of $300,000 has been arranged with MineralFields Group.

Each Flow-Through Unit will consist of one common share (the "Common Shares") to be issued on a "flow-through" basis under the Income Tax Act (Canada) and one non-transferable share purchase warrant of the Company (the "Unit Warrants"). Each Unit Warrant will have a term of 24 months (the "Term") and will entitle the holder to purchase one Common Share at a price of $0.95 per share in the first year of the Term and $1.20 in the second year of the Term. Pursuant to the Private Placement, if the average closing price of the Common Shares is over $1.15 for a period of 20 consecutive trading days (following the expiry of the hold period) in the first year of the Term, or $1.40 in the second year of the Term, the Unit Warrants must be exercised within ten business days of receiving written notice from NFX or they are to be terminated.

All securities to be issued pursuant to this Private Placement will be subject to a four-month hold period. Subject to regulatory approval, the Company will pay a finder's fee equal to 5% of the completed Private Placement, and further, the Company will issue finder's fee share purchase warrants, equal to 10% of the number of Units subscribed for to an arm's length party.

The net proceeds of the Private Placement will be used to finance exploration programs at NFX's exploration projects located in northeastern Ontario. The Private Placement is subject to approval by the TSX Venture Exchange.

About NFX Gold Inc.

NFX is involved in the acquisition, exploration and development of mineral resource properties located on the prolific Larder Lake break in Northern Ontario. NFX's main resource interests are the Larder Lake Properties, comprising the Cheminis, Fernland, Bear Lake (all 100% owned), and the Barber Larder gold property (75% owned). Additional holdings include: the Swansea property (75% owned), 29 mining claims (100% owned) that extend over 10kms along the Larder Lake Break, and the Lake Abitibi property (100% owned) located 100 kms north of Larder Lake. NFX is currently in the second phase of a $6 million Option and Joint Venture Agreement with Maximus Ventures Ltd. on NFX's Larder Lake Properties. The agreement provides Maximus with a right to acquire a 60% interest of NFX's interest in the Larder Lake Properties by expending $6 million on exploration by December 31, 2008.

About MineralFields

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar limited partnerships to investors throughout the world. Information about MineralFields Group is available at www.mineralfields.com.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • NFX Gold Inc.
    Thomas G. Larsen
    President and Chief Executive Officer
    (416) 360-8006
    (416) 361-1333 (FAX)
    or
    NFX Gold Inc.
    Jorge Estepa
    Vice President
    (416) 360-8006
    (416) 361-1333 (FAX)
    Website: www.nfxgold.com