| ||May 03, 2010|
Northern Tiger Resources Closes $3,010,000 Private Placement
| ||May 3, 2010: Northern Tiger Resources Inc. ("Northern Tiger" or the "Company") (NTR: TSX-V) is pleased to announce that, subject to final TSX Venture Exchange acceptance, it has closed a non-brokered private placement of 9,470,000 units ("Units") at a price of $0.20 per Unit and 4,464,000 class "A" common shares issued as "flow-through shares" under the Income Tax Act (Canada) ("FT Shares") at a price of $0.25 per FT Share for aggregate gross proceeds of $3,010,000 (the "Offering"). Each Unit consisted of one class "A" common share of Northern Tiger ("Common Share") and one-half of one transferable share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder thereof to purchase one Common Share for a price of $0.30 for a period of eighteen (18) months from the date of issuance, subject to earlier termination in the event that the closing price (or closing bid price on days when there are no trades) of the Common Shares on the TSX Venture Exchange exceeds $0.40 for 20 consecutive trading days. |
The FT Shares and Units were sold to qualified purchasers in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation. The net proceeds from the Offering will be used primarily for exploration on existing properties, and for general corporate purposes. The FT Shares, the Common Shares and Warrants comprising the Units and Common Shares issuable upon exercise of the Warrants are subject to a four (4) month restricted period which expires on September 4, 2010.
In connection with the private placement and in accordance with regulatory requirements, the Company paid certain arms-length parties an aggregate of $123,700 cash and granted an aggregate of 571,100 non-transferable share purchase warrants ("Finder's Warrants") to acquire 571,100 Common Shares. The Finder's Warrants are exercisable at a price of $0.23 for a period of eighteen (18) months from the date of issuance, subject to earlier termination in the event that the closing price (or closing bid price on days when there are no trades) of the Common Shares on the TSX Venture Exchange exceeds $0.40 for 20 consecutive trading days.
The TSX Venture Exchange has conditionally accepted the Offering and finder's fees.
Northern Tiger Resources Inc. is a Canadian-based resource exploration company focused on the rapidly developing Dawson Range gold-copper mining district in the Central Yukon. Through its exploration alliance with Capstone Mining Corp.'s wholly owned subsidiary, Minto Explorations Ltd., Northern Tiger benefits from a wide range of experience, knowledge and capabilities from early exploration to mine production.
For further information please contact:
Greg Hayes, President and CEO
This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in Company documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements. Neither 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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