MDN Inc.
TSX : MDN

MDN Inc.

April 05, 2007 18:22 ET

Northern Mining Announces Closing of Strategic Investment with GBS Gold

MONTREAL, QUEBEC--(CCNMatthews - April 5, 2007) - NORTHERN MINING Explorations Ltd. ("MDN")(TSX:MDN) is pleased to announce the closing of its previously announced strategic investment by GBS Gold International Inc. (TSX:GBS), pursuant to which MDN has issued 8,000,000 units for a total proceeds of $9.6 million or $1.20 per unit. Each unit consists of one MDN common share and one warrant to purchase one MDN common share at a price of $1.60 per share on or before October 5, 2008. Haywood Securities Inc. has received a finder's fee of 400,000 Units.

"The agreement with GBS Gold represents more than a private placement in MDN. Indeed, it is a key strategic alliance to consolidate our growth objectives with our new partner as we launched an unprecedented exploration program in 2007 across our large mineral rights position in Tanzania and look for further growth opportunities" stated Paul-A. Girard, MDN's Chairman of the Board.

As a result of this acquisition, GBS Gold holds approximately 9.83% of MDN and has the right to acquire a further 8.06% (based on current issued shares). GBS Gold also acquired the right to purchase the number of additional securities of MDN in any future offering of securities by MDN to maintain its shareholding percentage at that time.

The use of proceeds from the private placement is earmarked for prepayment of MDN's project debt and working capital purposes.

Furthermore, MDN is please to announce that it has received since March 9, 2007, an amount of more than $2.4 million pursuant to the exercise of over 3.2 million outstanding warrants.

MDN is a mining exploration company with its head office in Montreal (Quebec), Canada. Its main exploration activities are carried out in Tanzania through a 30% participating interest in the Tulawaka Gold Mine and a controlling interest in 20 mining permits around Tulawaka.

GBS Gold is an emerging gold producer at its Union Reefs Operations Centre located in historically productive goldfields in the Northern Territory of Australia.

Contact Information

  • Northern Mining
    Paul-A. Girard
    Executive Chairman
    514-866-6500
    or
    Northern Mining
    Dominique Fournier, Ph.D
    Vice-President Exploration
    514-866-6500
    or
    Northern Mining
    Richard Corbo
    Corporate Development
    514-866-6500
    info@xnord.com
    www.xnord.com