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Northern Graphite (TSXV:NGC) announces $20M private placement

Mining, The Market Online Deal Room
TSXV:NGC
17 January 2022 16:45 (EDT)

Source: Northern Graphite.

Northern Graphite (NGC) has announced a C$20M private placement.

It will offer up to 26,750,000 subscription receipts at a price of C$0.75 per receipt.

Each subscription receipt will be automatically exercised into one Northern unit upon satisfaction of the escrow release conditions.

Each unit is comprised of one Northern common share and one-half of one share purchase warrant.

Each warrant is exercisable to acquire one Northern common share for C$1.10 for a period of 24 months upon satisfying the escrow release conditions.

The company will use the proceeds to partially fund its acquisition of the Lac des Iles graphite mine in Quebec and the Okanjande graphite deposit and Okorusu processing plant in Namibia from Imerys Group for US$40M.

The escrow release conditions include all conditions pertaining to the aforementioned acquisitions.

Sprott Capital Partners LP, Cormark Securities, Canaccord Genuity and Tamesis Partners LLP are serving as lead agents.

The agents have the option to increase the placement for additional gross proceeds of up to C$3M.

Affiliates of the Sprott Group intend to participate through an investment of C$3.75M.

Northern Graphite produces natural graphite and upgrades mine concentrates into high-value products critical to the green energy revolution.

Northern Graphite (NGC) closed unchanged trading at $0.83 per share.

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