Northern Gold Mining Inc.

Northern Gold Mining Inc.

July 06, 2010 08:30 ET

Northern Gold Announces Completion of $2,500,500 Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - July 6, 2010) - Northern Gold Mining Inc. ("Northern Gold" or the "Company") (TSX VENTURE:NGM) announces that it has completed a private placement financing for aggregate gross proceeds of $2,500,500 (the "Offering") with BayFront Capital Partners Ltd. (the "Agent") as earlier announced. The Offering consisted of the sale of 9,002,678 Flow-Through Units at $0.14 per Flow-Through Unit for gross proceeds of $1,260,375, and the sale of 10,783,696 Hard Dollar Units at $0.115 per Hard Dollar Unit for gross proceeds of $1,240,125 of which 1,524,783 Hard Dollar Units were sold on a non-brokered basis.

Each Flow-Through Unit consists of one common share issued on a flow-through basis and one common share purchase warrant of the Company (a "Flow-Through Warrant"). Each whole Flow-Through Warrant entitles the holder to purchase one common share at a price of $0.17 for a period of 18 months following the closing date. Each Hard Dollar Unit consists of one common share of the Company and one common share purchase warrant (a "Hard Dollar Warrant"). Each whole Hard Dollar Warrant entitles the holder to purchase one common share at a price of $0.15 for a period of 18 months following the closing date.

The Company intends to use the net proceeds of the Offering for mineral exploration and working capital.

The securities issued pursuant to the Offering are subject to a 4 month statutory hold period. In connection with the Offering the Agent received a commission consisting of $100,000 payable in cash, and the issuance of 869,565 Hard Dollar Units and 1,978,637 Broker Units exercisable into Hard Dollar Units at the Hard Dollar Unit offering price for a period of 18 months following the closing date.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons as defined under applicable securities laws unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Northern Gold Mining Inc.

Northern Gold Mining Inc. is a Toronto based junior resource company dedicated to gold exploration in the Timmins and Kirkland Lake mining camps of Northern Ontario. The Company's focus is the Garrison gold property, which contains historic mining infrastructure with producing mines adjacent to the property. Per a NI 43-101 report filed by Northern Gold on SEDAR on 21 October 2009, the Garrison gold property has an indicated resource of 253,100 tonnes grading 7.77 grams per tonne gold (63,200 ounces) and an inferred resource of 1,555,800 tonnes grading 4.93 grams per tonne gold (246,540 ounces).

CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, future plans and objectives of Northern Gold Mining Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Northern Gold Mining Inc.'s expectations are the risks detailed herein and from time to time in the filings made by Northern Gold Mining Inc. with securities regulators. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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