News

NORTH COUNTRY GOLD CORP. CLOSES $6.0 MILLION PRIVATE PLACEMENT FLOW-THROUGH FINANCING


May 4, 2010

Edmonton, Alberta – North Country Gold Corp. (the “Company”) is pleased to announce that it has closed the private placement financing previously announced on April 8, 2010 (the “Offering”) with Canaccord Financial Ltd. (the “Agent”) acting as exclusive agent.  The Company sold 24,000,000 common shares of the Company issued as “flow-through shares” pursuant to the Income Tax Act (Canada) (“FT Shares”) at a price of $0.25 per FT Share, for proceeds of $6,000,000, including pursuant to the exercise of the over-allotment option granted to the Agent.

In connection with the sale of 23,370,000 FT Shares, the Company paid the Agent a cash commission of $408,975 (representing 7% of the proceeds) and issued to the Agent non-transferable share purchase warrants (“Agent’s Warrants”) entitling it to purchase up to 1,635,900 common shares of the Company (“Common Shares”) (representing 7% of such FT Shares) at an exercise price of $0.25 per Common Share until May 4, 2012.  The Company also issued to the Agent 100,000 Common Shares in payment of the $25,000 Corporate Finance Fee (“Corporate Finance Shares”) and reimbursed the Agent for its reasonable expenses incurred in relation to the Offering.  The remaining 630,000 FT Shares were sold on a non-brokered basis.
The FT Shares were sold to qualified purchasers in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation.  The FT Shares, the Corporate Finance Shares, the Agent’s Warrants, together with any Common Shares issued pursuant to the exercise of the Agent’s Warrants, will be subject to a restricted period expiring on September 5, 2010.

The Company intends to use the proceeds of the Offering to incur qualifying expenditures on its Committee Bay Project located in Nunavut.

North Country Gold

John Williamson, President and CEO

For more information on North Country Gold, please visit the company’s website: www.northcountrygold.com or contact:

Brian Budd
Director of Corp. Development
Email:[email protected]
Tel: 604-646-4525

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.