Toronto (pcJ News Briefs) – Northern Sphere Mining Corp. (CSE: NSM) has closed 1st tranche of proposed $2.8 million non-brokered private placement, issuing 5,775,000 units at $0.40 per unit for gross proceeds of $2,310,000. Eric Sprott, through 2176423 Ontario Ltd., acquired 5,000,000 units for $2 million.
Each unit will be comprised of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable to acquire one common share for a period of two years following the date of closing at an exercise price of $0.60 per share, subject to accelerated expiry.
As a result of the private placement, Sprott is the beneficial owner of 5,000,000 common shares and 2,500,000 warrants representing approximately 19.3% of the issued and outstanding common shares of Northern Sphere Mining on a non-diluted basis and 26.5% on a partially diluted basis.
Proceeds will be used for the advancement of Arizona Silver — Buckeye Mine, including underground development/rehabilitation, bulk-sampling and drilling, establishing ore extents, continuity and grade, and for general corporate purposes.
Northern Sphere Mining will engage Sprott Mining Inc., a company controlled by Eric Sprott, to provide technical assistance to the company.
photo credit: Northern Sphere Mining