Business & Finance
Business and Finance
Business and Finance
Mon, January 24, 2011 NORTHERN SECURITIES INC. TO LEAD FINANCING FOR BUCHANS MINERALS CORPORATION
NORTHERN FINANCIAL CORPORATION
(TSX: NFC)
TORONTO, Jan. 24 /CNW/ - Northern Securities Inc., a wholly owned subsidiary of Northern Financial Corporation (TSX:NFC), is pleased to announce that it has been engaged to raise $3,000,000 for Buchans Minerals Corporation (TSX-V:BMC) ("Buchans Minerals"). Buchans Minerals is an Atlantic Canada based resource company focused on exploring and developing base metal and gold properties in the region, including its flagship Lundberg & Engine House project covering the historic base metal Buchans mining camp in central Newfoundland.
The Offering is comprised of $1,500,000 of Units and $1,500,000 of Flow-Through Units. Each Unit will be offered at $0.11 per Unit and will consist of one common share and one common share purchase warrant (a "Hard Dollar Warrant"), with each Hard Dollar Warrant entitling the holder to acquire one common share at an exercise price of $0.17 for a period of two years.
Each Flow-Through Unit will be offered at $0.13 per Flow-Through Unit and will consist of one common share and a half common share purchase warrant (each whole warrant a "Warrant"), with each Warrant entitling the holder to acquire one common share at an exercise price of $0.18 for a period of two years.
Completion of the Offering is subject to certain conditions, including regulatory approval including the TSX-Venture Exchange. The Offering is expected to be completed on or about February 14, 2011.
The Agent will be paid a commission fee of 8% in cash and 8% in broker warrants exercisable for Units at $0.11 per Unit for a period of two years from closing.
About Northern Financial Corporation
Northern Financial Corporation ("Northern Financial") wholly owns Northern Securities Inc., a full service investment dealer that provides financial advisory services to retail and institutional clients and investment banking services to small capitalization companies.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this news release. This press release may contain forward-looking statements with respect to the Company, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of Northern Financial discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in the Management's Discussion and Analysis and Annual Information Form of Northern Financial which are available at [ www.sedar.com ]. The cautionary statements qualify all forward-looking statements attributable to Northern Financial and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and Northern Financial has no obligation to update such statements.
