Northern Tiger Closes Private Placement and Announces Program


Northern Tiger Resources has raised a total of $1,095,000 and is planning a significant expansion to its previously announced $1-million exploration program. The Company is now planning a program totalling $1,750,000.

Northern Tiger intends to drill up to 12 diamond drill holes (2,600 metres) at Sonora Gulch. The primary focus of the drill program will continue to be on the Nightmusic Zone, where 2008 drilling intercepted 26.6 metres grading 4.96 g/t gold, 11.9 g/t silver and 0.23% copper. Surface exploration and geophysical programs will also be expanded, including exploration for Minto-style deposits on the properties Northern Tiger obtained from its exploration alliance partner Minto Exploration Ltd., a wholly owned subsidiary of Capstone Mining Corp.

We have really just begun exploring what we believe is a large mineralized system at Sonora Gulch, and are pleased to be able to expand our 2009 program”, says Greg Hayes, President of Northern Tiger. “The additional work should allow us to build on our previous exploration success and continue to demonstrate the potential of the Sonora Gulch property to host significant gold mineralization. In addition, we are committed to achieving our goal of advancing at least one Minto-style target to the drill-ready stage for 2010.”

On August 17, 2009 the Company closed a non-brokered private placement of 3,650,000 units (“Units”) at a price of $0.20 per Unit and 1,825,000 class “A” common shares issued as “flow-through shares” under the Income Tax Act (Canada) (“FT Share”) at a price of $0.20 per FT Share for aggregate gross proceeds of $1,095,000. Each Unit consisted of one class “A” common share of Northern Tiger (“Common Share”) and one transferable share purchase warrant (“Warrant”). Each Warrant entitles the holder to acquire an additional Common Share at a price of $0.30 at any time within 24 months of issuance.

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 proceeds from the sale of FT Shares will be used to incur expenditures which qualify as Canadian Exploration Expenses, and will be used to explore Northern Tiger’s Yukon mineral properties. The proceeds from the sale of the Units will be used to explore Northern Tiger’s Yukon mineral properties and for general corporate expenses. 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 December 18, 2009.

In connection with the private placement and in accordance with regulatory requirements, the Company paid $3,750 cash as Finder’s Fees to an arm’s length party. The TSX Venture Exchange has conditionally accepted the private placement and finder’s fees.

Be Sociable, Share!

, ,

Comments are closed.