Northern Abitibi Mining Corp.
TSX VENTURE : NAI

Northern Abitibi Mining Corp.

February 25, 2016 14:59 ET

Northern Abitibi Announces Private Placement

CALGARY, ALBERTA--(Marketwired - Feb. 25, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Northern Abitibi Mining Corp. ("Northern Abitibi or the Company") (TSX VENTURE:NAI) announces that it has engaged IBK Capital Corp. ("IBK Capital") to complete a best efforts private placement of a minimum of 17,500,000 common shares up to a maximum of 30,000,000 common shares at $0.01 per share for minimum proceeds of $175,000 and maximum proceeds of $300,000. IBK Capital will be paid a cash commission of 9% of the amount raised and 10% of the amount raised in broker warrants. Each broker warrant entitles the holder to purchase one common share and is exercisable for five years at $0.05 per share.

The terms of the private placement are according to the TSX Venture Exchange ("Exchange") Discretionary Waivers of $0.05 Minimum Pricing Requirement Bulletin dated April 7, 2014 and are subject to Exchange approval.

The funds from the private placement will be used for the following working capital requirements:

Corporate Administrative Expenses Minimum Maximum
Raised Raised
Professional Fees (Audit, Legal, Accounting) (1) $ 51,000 $ 51,000
Director Fees (2) 4,000 4,000
Shareholder expense (AGM/Stock Transfer/Filing Fees) 31,000 31,000
Insurance and premises 18,000 18,000
Share Issue costs (Agent, TSX-V) 10,000 10,000
Project Expenditures 10,000 10,000
Consultants and Executive compensation (3) 10,000 10,000
Administrative and office costs 10,000 10,000
Financing Costs 20,000 32,000
Other Working Capital Purposes 11,000 124,000
Total $ 175,000 $ 300,000
(1) $12,000 proposed payable to related party
(2) $4,000 proposed to two related parties
(3) $10,000 proposed to related party

About Northern Abitibi Mining

Northern Abitibi Mining Corp. is a Canadian Junior Exploration Company with an experienced exploration team that is focused on identifying, acquiring and developing high potential North American exploration projects in a timely, responsible and cost-effective manner. The Company continues to actively search for new early stage exploration opportunities and avenues for growth in stable jurisdictions within North America. The Company owns 11 million shares of Spruce Ridge Resources Ltd. (22.7%).

Shane Ebert, President/Director

The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release.

Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans", "anticipates" and similar expressions, are forward-looking information that represents management of Northern Abitibi's internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of Northern Abitibi. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Northern Abitibi's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in Northern Abitibi's filings with the Canadian securities authorities. Accordingly, holders of Northern Abitibi shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. Northern Abitibi disclaims any responsibility to update these forward-looking statements.

Contact Information

  • Northern Abitibi Mining Corp.
    Shane Ebert
    1.250.964.2699

    Northern Abitibi Mining Corp.
    Jean Pierre Jutras
    1.403.233.2636
    www.naminco.ca