North American Gem Inc. Closes Private Placement
VANCOUVER, BRITISH COLUMBIA, Oct 18, 2010 (MARKETWIRE via COMTEX News Network) --
North American Gem Inc. (NAG) (TSX VENTURE: NAG) reports that it has closed the non-brokered private placement originally announced on August 4th, 2010 and repriced on September 8th 2010. In addition to the first tranche in which the Company raised $792,086.24, the Company has raised a further $289,906 in the second and final tranche.
A total of 3,623,825 non-flow-through units at a price of $0.08 per unit were issued in the second tranche. Each unit consists of one common share and one non-transferable share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the Company at a price of 10 cents per share for the first year, 12 cents per share on the second year and 15 cents per share until expiration on the third year.
Shares, warrants and any shares issued upon exercise of the warrants are subject to a hold period expiring February 16, 2011. The proceeds of the private placement will be used for exploration of the company's mineral properties and general working capital.
The following insider and pros participated in the private placement:
Pro group: David Hamilton-Smith 100,000 shares, and Darrell Jamha 62,500 shares.
Finders' fees: $11,200 cash and 140,000 warrants (same terms as private placement above) payable to Canaccord Genuity Corp. $11,500 cash and 143,750 warrants (same terms as private placement above) payable to Northern Securities Inc. $6,420 cash and 80,250 warrants (same terms as private placement above) payable to Alex Kuznecov.
North American Gem Inc. (TSX VENTURE: NAG) is a junior resource Company in Western Canada. The company's major focus is expanding its coal mining operations at its flagship properties in Kentucky. In addition, the Company has interests in coal, copper, molybdenum, and other base metals in Canada.
On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
Charles Desjardins, President and Director
