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Northern Uranium to cede control to Palisade Global Investments

Northern Uranium Corp. agreed to cede the company's control to resource-focused investment company, Palisade Global Investments Ltd.

Palisade intends to use Northern Uranium as a vehicle to continue exploration on its flagship Northwest Manitoba uranium project, as well as other assets.

Northern Uranium said late July that it was no longer interested in developing the Northwest Manitoba, and was looking for buyers for its interest in the property.

The company will undertake a 15-to-1 consolidation of its outstanding share capital, following which Palisade and a small group of investors will subscribe for a private placement of 14,222,222 units at 5.625 Canadian cents apiece to raise C$800,000.

The units will include 1 share and 1 share purchase warrant, exercisable at 7.5 cents for five years.

The funds will be used to settle the outstanding debt of the company and for general working capital, according to a Jan. 3 release.

Palisade intends to overhaul the company's board as part of the agreement. Meanwhile, Northern Uranium will retain CEO Chad Ulansky and CFO Jennifer Irons for 12 months.

Additionally, the current control person of the company, Charles Fipke, will allow Palisade to acquire his stake in the company.