Northern Uranium Corp. (TSX-V: UNO) has entered an agreement with Palisade Global Investments Ltd pursuant to which Palisade will gain control of the company.
Northern Uranium will effect a 15 to 1 consolidation and completed a post-consolidation private placement with Palisade and a small group of investors of 14,222,222 units at $0.05625 per unit for gross proceeds of $800,000.
Palisade and a small group of investors will own 57% of the Northern Uranium upon completion of the transaction.
Charles Fipke, the current control person of the company (42% stake), has granted Palisade an option to acquire the shares of the company held by him, which if completed, would increase Palisade’s take to 75%.
NORTHERN URANIUM ANNOUNCES CHANGE OF CONTROL
Kelowna, British Columbia – January 3, 2019 – Northern Uranium Corp. (TSXV: UNO) (the “Company”). The Company announces that it has reached agreement with Palisade Global Investments Ltd (“Palisade”) to cede control of the Company to Palisade (the “Agreement”).
Under the terms of the Agreement, which remains subject to TSX Venture Exchange acceptance, the Company will effect a 15 to 1 consolidation of its outstanding share capital, following which Palisade and a small group of investors will subscribe for a post consolidation private placement of 14,222,222 units of the Company at $0.05625 per unit (the “Placement”) so as to raise $800,000. The units will be comprised of one share and one share purchase warrant exercisable at $0.075 for a term of 5 years. The proceeds of the Placement will be applied to outstanding indebtedness of the Company and for general working capital.
The Agreement also contemplates Palisade effecting changes to the board of the Company and provides that, on closing of the Placement, the Company will engage Chad Ulansky and Jennifer Irons, the current CEO and CFO of the Company respectively, to continue to fill those roles for a period of 12 months.
Concurrent with the entering into of the Agreement, Charles Fipke, the current control person of the Company, is to grant Palisade an option to acquire the shares of the Company held by him.
Palisade is a resource focused investment company. Palisade is bullish on the uranium market for 2019 and beyond and intends to use Northern Uranium as a vehicle to continue exploration on its flagship Northwest Manitoba project, as well as exploring other exploration and development assets.
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