Northern Graphite Announces Early Exercise of Warrants
November 14 2011 - 6:53AM
Marketwired
Northern Graphite Corporation (TSX
VENTURE:NGC)(OTCQX:NGPHF)("Northern" or the "Company") announces
that to date, 6,211,415 of its outstanding warrants have been
exercised early resulting in proceeds to the Company of $2,020,425.
As a result, Northern now has 37,148,340 common shares, 5,504,156
warrants and 2,950,000 options outstanding. Most of the remaining
warrants are exercisable at $0.35 until October 7, 2012 and if
exercised, the Company will receive an additional $1,818,599 in
cash.
Gregory Bowes, CEO, commented that: "a number of warrant holders
agreed to exercise early to ensure that the Company had sufficient
financing to complete its bankable Feasibility Study ("FS") and
permitting without incurring the additional dilution of a
financing. The support of these shareholders is greatly
appreciated."
The FS is now scheduled for completion in January, 2012 as the
Company's pilot plant test at SGS Lakefield's facility was delayed
by the preceding one which ran two months late. The Company expects
to submit its Mine Closure Plan to the Ministry of Northern
Development and Mines shortly. This is the main document governing
the operation and permitting of the Bissett Creek Project and the
Company anticipates that it will be accepted in the first quarter
of 2012.
Northern also announces that its major shareholder, Mindesta
Inc. ("Mindesta"), intends distribute most of the Northern shares
that it owns to Mindesta shareholders by way of a special dividend.
Mindesta owns 9,750,000 common shares of Northern of which
7,312,500 remain subject to an escrow agreement imposed by Canadian
securities laws and the TSX Venture Exchange ("TSXV") as part of
Northern's initial public offering. The escrowed shares are being
released in equal tranches of 1,462,500 shares every six months
from the date that Northern became listed on the TSXV, being April
20, 2011. The terms of the escrow provide for the early release of
the shares to permit their distribution to Mindesta's shareholders,
subject to TSXV approval. Mindesta has applied to the TSXV for the
early release of the shares from escrow to facilitate this
distribution but has not yet received approval.
Mindesta will set a record date for shareholders entitled to
receive the distribution immediately after TSXV approval is
received. Subject to the satisfactory review of all legal and tax
issues, it is contemplated that Mindesta shareholders will receive
one share of Northern for every share of Mindesta held. Mindesta
currently has 8,960,081 shares outstanding as well as 562,500
options to purchase common shares.
It is anticipated that the release of these shares will increase
trading and liquidity in Northern's shares.
About Northern Graphite Corporation
Northern Graphite Corporation (TSX VENTURE:NGC) holds a 100%
interest in the Bissett Creek graphite project which is located
17kms from the Trans Canada highway between Ottawa and North Bay,
Ontario. The Company is in the process of completing a bankable
final Feasibility Study and permitting with the objective of
initiating construction, subject to the results of the study and
the availability of financing, in the first half of 2012.
Additional information on Northern Graphite Corporation can be
found under the Company's profile on SEDAR at www.sedar.com and on
the Company's website at www.northerngraphite.com
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction.
This press release contains forward-looking statements, which
can be identified by the use of statements that include words such
as "could", "potential", "believe", "expect", "anticipate",
"intend", "plan", "likely", "will" or other similar words or
phrases. These statements are only current predictions and are
subject to known and unknown risks, uncertainties and other factors
that may cause our or our industry's actual results, levels of
activity, performance or achievements to be materially different
from those anticipated by the forward-looking statements. The
Company does not intend, and does not assume any obligation, to
update forward-looking statements, whether as a result of new
information, future events or otherwise, unless otherwise required
by applicable securities laws. Readers should not place undue
reliance on forward-looking 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.
Contacts: Northern Graphite Corporation Gregory Bowes, CEO (613)
241-9959 Northern Graphite Corporation Don Baxter P.Eng, President
(705) 789-9706www.northerngraphite.com
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