NEMI Northern Energy & Mining Inc. (Northern Energy) wishes to announce that it has signed a letter agreement for a brokered private placement with gross proceeds of up to $10,000,000. The offering is for 5,333,333 units at $1.50 per unit with gross proceeds of $8,000,000. Each unit is comprised of one share and one-half share purchase warrant, with each full warrant entitling the holder to purchase one additional common share for a period of 12 months at a price of $1.75 per share.
In addition, the Agents have an oversubscription option to sell a further 1,333,333 units on the same terms and conditions as set out above for additional gross proceeds of $2,000,000.
The offering is being made by a syndicate of agents led by Salman Partners Inc., and includes Dominick & Dominick Securities Inc. (the ?Agents?).
Northern Energy has agreed to pay a cash commission of 6.5% of the total gross proceeds sold by the Agents and in addition, Northern Energy has agreed to issue to the Agents that number of broker warrants as is equal to 10% of the number of units sold by the Agents. Each broker warrant will entitle the holder thereof to purchase one unit for a period of 12 months at a price of $1.50 per unit.
Proceeds received from the offering will be used to pay for exploration and development work on the Company?s Trend and Saxon coal properties in British Columbia and for general working capital.
The transaction is subject to receipt of all necessary regulatory and stock exchange approvals.
The securities being offered have not, nor will they be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
NEMI NORTHERN ENERGY & MINING INC.