Northern Abitibi Mining Corp.
TSX VENTURE : NAI

Northern Abitibi Mining Corp.

February 05, 2010 15:41 ET

Northern Abitibi Closes Non-Brokered Financing

CALGARY, ALBERTA--(Marketwire - Feb. 5, 2010) -

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 for 3,233,332 units ("Common Units") at a price of $0.15 per Common Unit and 5,275,000 flow-through units ("FT Units") at a price of $0.16 per FT Unit for gross proceeds of $1,329,000.

Each Common Unit consisted of one common share and one common share purchase warrant. Each common share purchase warrant entitles the holder to purchase one common share at a price of $0.22 per share until February 5, 2012. 

Each FT Unit consisted of one common flow-through share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one common share at a price of $0.22 per share until February 5, 2012. 

The Common Units and FT Units were offered on a non-brokered basis by way of private placement to accredited investors and all securities issued are subject to a hold period until June 6, 2010. A finder's fee of $75,530 (7% of eligible gross proceeds) was paid to eligible agents pursuant to the offering. Insiders purchased a total of 306,666 Units.

Proceeds of the financing will fund 2010 exploration at the Viking gold property in Newfoundland and provide general working capital. 

Northern Abitibi

Northern Abitibi's technical team of experienced professional geologists are focused on advancing the Viking gold project in Newfoundland. Northern Abitibi owns 100% of the Viking project with Altius Resources Inc. retaining a 2% to 4% sliding scale net smelter royalty that is tied to the price of gold. A description of the Viking project can be found on our website at www.naminco.ca.

Dr. Shane Ebert, P.Geo., is the Qualified Person responsible for the preparation of this news release.

Shane Ebert, President/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
    (250) 964-2699
    www.naminco.ca