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NFE.V Year End Results (Ending September 30th 2014)
Current Price: $0.015
Insider Holdings: Slightly under 25% with recent private placement included
Cash: $599,149( $1 million raised December 2014 at $0.05c, 3 times current stock price)
Receivable: $12,205
Prepaid Amount: $13,727
Total Assets: $10,800,384(Not including $1 million extra in cash)
Total Debt: $70,044
Total Shares: 76,629,875( 19.5 million shares added which is all insider holdings now)
Average Quarterly cash burn: $200,000 over 3 months
MD&A Audited Information(Highlights)
Northern Iron is a mineral exploration company focused on developing high quality iron ore opportunities in the Red Lake Mining Division of Ontario, Canada, which is a past-producing iron ore district. The Company is a 100% owner of five iron ore properties in the Red Lake district containing significant historical resources with grades ranging from 22% to 31% Fe2O3. Northern Iron is listed on the TSX Venture Exchange and commenced trading on 26 August 2011.
On 16 October 2014, the Company announced that it has entered into an investment agreement with OMC Investments Limited (“OMC”), of Hong Kong. The transaction closed on 28 November 2014, and the Company issued 19,048,000 units of the Company (“Units”) by way of private placement at a price of $0.05 per unit, for aggregate proceeds of $952,400. OMC now holds approximately 19.9% of the issued and outstanding shares of the Company. Each Unit consists of one common share in the capital of Northern Iron and one common share purchase warrant (a “Warrant”). Each Warrant is exercisable for a period of three years from the date of closing of the Private Placement at an exercise price of $0.05. The Company also issued 15 common shares of its subsidiary Canadian Iron Metallics Inc. (“CIM”) to OMC, reducing its ownership share from 100% to 85%. CIM holds the Company’s interests in the Karas and Griffith’s properties. The value attributed to the non-controlling interest in CIM on the closing date is nil. In addition, the shareholders’ agreement with OMC will allow OMC to progressively earn additional equity in CIM, up to a total of 70% of CIM’s issued and outstanding shares, as follows: an additional 30% for $8.2 million in funding from OMC for dewatering, resource drilling and
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