55 North Mining Completes Flow-Through Financing to Boost Exploration Efforts

Overview of the Financing

55 North Mining Inc. has announced the successful closure of its non-brokered flow-through private placement, a financing strategy designed to attract capital for its exploration initiatives. This move has generated significant funds, allowing the issuance of 1,702,800 flow-through common shares at a price of $0.745 each, totaling approximately $1,268,586.02.

Allocation of Funds

The proceeds from this financing will be allocated specifically towards eligible Canadian exploration expenses, classified as "flow-through mining expenditures" under the Income Tax Act of Canada. These funds are intended to further the exploration efforts at the Company’s Last Hope Gold Project located in Manitoba.

Current Exploration Activities

As part of its ongoing efforts, 55 North Mining has confirmed that exploration drilling is currently in progress at the Last Hope Gold Project. One drill rig is actively operating on-site, working towards identifying mineral resources and enhancing the project’s potential. The Company plans to release a more detailed update on these operations in the near future.

Details of the Share Issuance

Holders of the flow-through shares will enjoy the associated tax benefits as stipulated in Canadian tax legislation. Importantly, the shares issued through this private placement will be subject to a four-month hold period, per applicable securities laws, which regulates the initial trading of these securities.

Conclusion

This financing initiative represents a strategic step for 55 North Mining as it seeks to bolster its exploration capabilities and advance one of its key projects in the competitive mining sector.

Key Takeaways

55 North Mining has raised over $1.26 million through a flow-through private placement.

Funds will be used for exploration expenses at the Last Hope Gold Project in Manitoba.

Drilling activities are currently underway at the project site.

Investors benefit from tax advantages associated with flow-through shares.

The shares are subject to a four-month hold period as per securities laws.