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  • Northern Graphite Corporation (TNGC) closes an initial $19.3 million private placement related to the acquisition of graphite mines and plants
  • Northern Graphite issued 25.7 million subscription receipts at a price of $0.75 each for through a syndicate of agents
  • Affiliates of the agents have indicated their intention to purchase the remaining balance of five million subscription receipts not issued in the initial closing for $3.75 million
  • The net proceeds will be used to partially fund the purchase price for the US$40 million asset transaction
  • Northern Graphite Corporation (TNGC) is down 3.53 per cent trading at $0.82 per share as of 4:00 p.m. EST

Northern Graphite (TNGC) has closed an initial private placement related to the US$40M acquisition of graphite mines in Quebec and a processing plant in Namibia.

The acquisition is for the Lac des Iles graphite mine in Quebec, Okanjande graphite deposit, and Okorusu processing plant in Namibia from subsidiaries of Imerys Group.

Northern Graphite issued 25.7 million subscription receipts at a price of $0.75 each through a syndicate of agents.

The agents exercised their option to increase the subscription receipt base size by an additional four million.

Affiliates of the agents have indicated their intention to purchase the remaining balance of five million subscription receipts not issued in the initial closing for $3.75 million.

The net proceeds will be used to partially fund the US$40 million acquisition, $3 million of which will be satisfied by issuing units to Imerys.

Each subscription receipt will be automatically exercised into one unit of Northern Graphite.

Each unit consists of one common share of Northern and one-half of one share purchase warrant of Northern Graphite.

Each warrant is exercisable to acquire one common share for $1.10 per common share for two years after conditions are met.

The gross proceeds of the initial closing of the private placement were deposited in escrow upon closing.

Northern Graphite Corporation (TNGC) is down 3.53 per cent trading at $0.82 per share as of 4:00 p.m. EST.

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