Northern Abitibi Mining Corp.
TSX VENTURE : NAI

Northern Abitibi Mining Corp.

May 02, 2007 16:13 ET

Northern Abitibi Closes Financing

CALGARY, ALBERTA--(CCNMatthews - May 2, 2007) -

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. (TSX VENTURE:NAI) ('Northern Abitibi') is pleased to announce that it has closed a non-brokered private placement of 4,583,333 units at a price of $0.12 per Unit (the "Unit Issue Price"), for gross proceeds of $550,000.

Each Unit consists of one common share and one-half of one share purchase warrant (the "Unit"). Each whole warrant entitles the holder to purchase an additional common share at a price of $0.16 until May 2, 2009.

A cash finder's fee equal to 5% of the gross proceeds or $25,000 was payable on the financing to a registered dealer. As additional consideration, the registered dealer was issued warrants (the "Finder Warrants") of the Corporation to purchase 208,333 Units. Each Finder Warrant will be exercisable into one Unit at an exercise price equal to the Unit Issue Price until May 2, 2009.

All securities issued will be subject to a hold period until September 3, 2007. A total of 129,165 Units were issued under the Offering to directors and officers.

Proceeds of the financing are to be used to fund a portion of the proposed 2007 exploration program on the Taylor Brook Nickel-Copper-Cobalt-PGE prospect located in northwestern Newfoundland, investigate new property acquisitions and for general working capital.

Shane Ebert, P. Geol., President and Director

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.

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

Contact Information

  • Northern Abitibi Mining Corp.
    Shane Ebert
    (403) 233-2636
    or
    Northern Abitibi Mining Corp.
    Jean Pierre Jutras
    (403) 233-2636
    Website: www.naminco.ca