True North Gems Preparing to Close Second Tranche of Brokered Private Placement

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True North Gems Inc. (TGX.V) provided an update on its brokered private placement under which the company has agreed to issue up to 175,000,000 Class A common shares at a price of $0.09 per share for gross proceeds of up to $15.75 million.

The first tranche of the private placement, under which True North received gross proceeds of $499,999.95 through the sale of 5,555,555 shares, closed on April 5, 2013.

With the comprehensive due diligence drawing to a successful conclusion, True North intends to close the second tranche of the financing, under which Lenomi Holdings Limited will subscribe for 47,701,948 shares for $0.09 per share for gross aggregate proceeds of $4,293,175, on or about the end of May 2013.


The third tranche of the financing, under which True North is proposing to issue approximately 121,742,496 shares to Lenomi for $0.09 per share for gross proceeds of $10,956,825, will result in Lenomi holding approximately 45% of True North's issued and outstanding shares.

Closing of the third tranche is expected to take place on or before July 15, 2013.

The company intends to use the net proceeds of the financing to advance the development of the Aappaluttoq Ruby Project in Greenland as well as general working capital.

TGX shares gained a penny to $0.06.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

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