MDN Inc.
TSX : MDN

MDN Inc.

June 01, 2005 08:57 ET

Northern Mining Announces a Private Placement

MONTREAL, QUEBEC--(CCNMatthews - June 1, 2005) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

NORTHERN MINING Explorations Ltd. (Explorations MINIERES du NORD Ltee - "MDN") (TSX:MDN) is pleased to announce that it has entered into an agreement with Dundee Securities Corporation and Quest Securities Corporation, as agents, pursuant to which the agents have agreed to offer units of MDN, on a best effort private placement basis, at a price of $0.50 per unit for gross proceeds to MDN of up to $5 million. Each unit consists of one common share and one common share purchase warrant. Each warrant will be exercisable at a price of $0.75 for a period of five years from the closing date, subject to an acceleration clause. The offering is scheduled to close on or about June 23, 2005 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of The Toronto Stock Exchange.

Net proceeds from this offering will be used primarily to finance exploration programs on the properties located in Tanzania and in Eritrea; the balance will be added to MDN's working capital.

MDN is a Montreal-based Canadian exploration company that holds a 30% interest in the Tulawaka gold mine and a majority interest in 25 adjacent licences in Tanzania, a majority interest in four properties in Eritrea, and other gold and base metal exploration interests in Quebec, Canada.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Contact Information

  • MDN
    Carlos H. Bertoni, M.Sc., P.Geo.,
    CEO
    or
    MDN
    Tim Williams, Ph.D.
    COO
    or
    MDN
    Paul-A. Girard
    Chairman and V.-P., Corporate relations
    (514) 866-6500
    info@xnord.com
    http://www.xnord.com