Sudbury, Ontario, January 27, 2011. Northern Superior Resources Inc. (the “Company”) is pleased to announce the closing of the fully-subscribed private placement financing (the “Offering”) of common shares of the Company issued on a flow-through basis (the “Flow-Through Shares”) previously announced on December 17, 2010. Pursuant to the Offering, 2,617,521 Flow-Through Shares at a price of $1.10 per Flow-Through Share were sold to purchasers in Ontario and 4,113,248 Flow-Through Shares at a price of $1.40 per Flow-Through Share were sold to purchasers in Quebec for gross proceeds of $8,637,820.30.
The Offering was undertaken by a syndicate of agents led by Wellington West Capital Markets Inc. and comprised of Scotia Capital Inc. and Paradigm Capital Inc. (collectively, the “Agents”).
In connection with the Offering, the Agents were granted a cash commission equal to 6% of the gross proceeds of the Offering as well as compensation options entitling the Agents to purchase, in the aggregate, that number of common shares in the capital of the Company (“Common Shares”) representing 6% of the number of Flow-Through Shares sold under the Offering (the “Compensation Options”). Each Compensation Option is exercisable for one Common Share at a price of $0.80 per share for a period of 12 months from today’s date.
The Flow-Through Shares and the Common Shares issuable upon the exercise of the Compensation Options are subject to a four-month restricted resale period which expires on May 28, 2011.
The Company plans to use the net proceeds from the Offering to fund ongoing exploration activities on the Company’s gold projects, which expenses are eligible for Canadian exploration expenses for tax purposes and will be renounced in favour of the subscribers for the Flow-Through Shares effective on or before December 31, 2011.
Thomas Morris, President and C.E.O. of the Company says: “Northern Superior Resources would like to thank Wellington West, Scotia Capital and Paradigm for their efforts in the successful completion of this and last weeks successful financings. The funds raised will be used to further exploration efforts on the Company’s high quality, highly prospective properties both in Ontario and Quebec.”
About Northern Superior
Northern Superior Resources Inc. is a junior exploration company whose focus is exploring for gold on the Superior Province of the Canadian Shield. The Company currently has three active, high quality gold exploration projects in Ontario and Quebec – TPK, Thorne Lake and Wachigabau (see Company web site www.superior.com). These projects and seven more early stage gold exploration projects are based on the same type of geoscientific data as TPK [New Growth (Northwest part of the TPK Property), Rapson Bay, Meston Lake, Lespinay, Lac Surprise, Hazeur, Chibougamou River and Lemark]. The Company is a reporting issuer in British Columbia, Alberta, Ontario and Quebec, and trades on the TSX Venture Exchange under the symbol SUP.
Neither the TSX Venture Exchange nor its Regulation Services Provide (as such term is defined in the TSX Venture Policies) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Thomas F. Morris
President and CEO
Tel: (705) 525- 0992
Fax: (705) 525- 7701