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Nordic Gold to raise up to C$10M

Nordic Gold Corp. said Sept. 6 that it intends to raise up to C$10 million through a private placement of units consisting of 1 share and 1 warrant each at 15 cents per unit.

Each warrant may be exercised for 24 months at 20 Canadian cents per share and will contain an early acceleration clause if the Nordic shares trade above 60 cents for 30 consecutive days.

Nordic also said it agreed to amend the provisions of a prepaid forward gold purchase agreement, valued at US$20.6 million, with PFL Raahe Holdings LP.

The deal provided Nordic, formerly known as Firesteel Resources, with funds to restart its Laiva gold mine in Finland. PFL previously agreed to advance US$20.6 million to Nordic in exchange for 67,155 ounces of gold over 60 months.

The parties agreed to remove a clause related to an early buyout of the prepaid deal that gave PFL the option to receive up to 270 million common Nordic shares in place of the delivery of up to 24,000 ounces of gold.

Under the amended deal, PFL will be granted a 2.5% net smelter return on gold production from the mine and will be issued 36.5 million Nordic shares.

Nordic will also pay PFL US$1.5 million in cash within six months of entering into a definitive amendment to the agreement. The deal's upside participation price will also be lowered to US$1,200 per ounce from $1,234.50/oz.