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RAPAPORT... True North Gems Inc. closed an $11 million finance package with Leonard Nilsen & Sonner (LNS Group) and LNS Greenland (LNSG) that was agreed to on September 11, 2014.
"With the completion of this financing package True North and LNSG can now concentrate on building Greenland's first ruby mine together," said Nicholas Houghton, the president and CEO of True North Gems. "I am very impressed by the organized and coordinated way mobilization has thus far been conducted and successfully concluded by our LNSG partners. Our local staff in Greenland are working closely with the teams and we all look forward to overcoming the challenges of the mine construction phase, and commencing production next year." The LNS Group and LNSG have provided financing to True North and True North Gems Greenland, the miner's local operating subsidiary, in the amount of $3 million through the purchase of 28,571,428 Class A common shares and another $3 million for increasing investment stake in the miner by 7 percent. LNSG will provide an additional $5 million against estimated construction costs through a capital loan.
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