NOX - Niogold Mining Corp - Page 10

Word is another very big newsletter writer is onto NOX.

The following nr released discreetly is linked to my december 21 post.

NioGold Mining to raise $250,000 for working capital

2006-12-22 18:56 ET - News Release

Mr. Michael Iverson reports

NIOGOLD ANNOUNCES PRIVATE PLACEMENT

NioGold Mining Corp., subject to regulatory approval, will conduct a non-brokered private placement of up to one million flow-through units at a price of 25 cents per unit for gross proceeds of $250,000. Each flow-through unit will consist of a flow-through common share and one-half of one non-flow-through warrant. Each whole warrant will be exercisable at 35 cents for a period of one year.

All securities will be subject to a four-month hold period.

The proceeds of the private placement will be used for general working capital purposes.

The exploration programs are conducted under the supervision of Rock Lefrancois, PGeo (OGQ), the company's vice-president, exploration, and qualified person as defined by National Instrument 43-101.

I noticed how discreetly this PP was announced. If I didn't have Stockwatch, I would have never even seen it. So, this is related to the pending newsletter? How does this work?

TIA

Croc, I don't agree with the cheapness of the flow-through offering. Though it was not sizable, the idea was to get certain key figures in on the pp. To mitigate the cheapness, they announced it quietly.

So, I'm new to this and just trying to understand the logic. NOX allows a "cheapie" private placement to give key figures an opportunity to buy in (1 mil shares). This, in turn, incentives the key figures to follow the stock closely and issue buy recommendations in their newsletters.

So, it's a win for NOX because their story will get out and these key figures will generate short term interest in the stock.

It's a win for the key figures because they got cheapies with a short 4 month hold. As long as the story unfolds nicely and they continue to drive the stock up, the key figures make a nice profit in 4 months.

Other stockholders also win if the share price is driven higher and the stock gets more attention.

So, as long as Niogold has good assay results, I would assume a nice rise in share price between now and April. But, unless Niogold makes some significant discoveries, should we not expect a sell-off when the 4 month freeze is over for this PP of 1 mil shares?

I agree that the flow-through was not sizeable, but it seems kind of unethical to me to fatten the key figures pockets (and dilute other shareholders) for the sake of some publicity. I'm sure this happens all the time with Companies, but I would prefer the assay results to speak for themselves without the cheap dilution.

Am I misunderstanding?

You are understanding the scenario through and through except for the part regarding ethics. I am rather agnostic to this question of ethics here because it is within the rules. I think they could have done the pp at 30 cents or even higher is my only point; that way, retailers who have been supporting the stock at these levels or even higher than 25 cents are given a fairer shake, at the very least in terms of perception. But overall, the assessment you have outlined is bullish for all concerned, so long as results continue to be encouraging.

Thanks for the insight. I agree, as long as assay results are good, some PR exposure (newsletters, etc.) can only be good/bullish for the stock. I know the first two holes have been good ones, so I hope there are other good results to follow.

Thanks again for helping me to understand the scenario. Good luck!

I erred in an earlier post. I posted that there are 15 holes to report. It turns out what was conveyed to me was that 15 holes were submitted at the time of my post but soon afterwards 14 more holes went to the lab. 29 holes in total went in for assaying, so depending on whether the two reported holes are part of this 29 or not, there are well over two dozen more holes to report.

Niogold Mining one-million-FT-share private placement

Niogold Mining Corp (C:NOX)
Shares Issued 32,885,123
Last Close 1/2/2007 $0.265
Tuesday January 02 2007 - Private Placement

The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced Dec. 22, 2006.

Number of shares: One million flow-through shares

Purchase price: 25 cents per share

Warrants: 500,000 share purchase warrants to purchase 500,000 shares

Warrant exercise price: 35 cents for a one-year period

Number of placees: 25

Pro group participation: Charlotte Faulkner, 40,000; Aaron Chan, 34,000

Finders' fees: $700 payable to Pacific International Securities; $2,800 payable to Union Securities Ltd.; $4,550 payable to Canaccord Capital Corp.

I bought in a few weeks ago and am eagerly awaiting some assay results. Looks promising though, with Agnico, Osisko, North Star all hanging around. I am interested especially in seeing what lie at depth

Leebert, I don't think any of the holes now in for assaying are deep enough to confirm extension of gold sheet that AEM and NSM have confirmed. That would be for a future program. That said, the Malarctic is often gold rich from shallow depth onwards.

NIOGOLD CUTS SIGNIFICANT GOLD CONFIRMING
NEAR SURFACE POTENTIAL AT NORLARTIC AND KIERENS
Val-d’Or, Quebec, January 9, 2007: NioGold Mining Corporation (« NioGold ») reports on the 2006 diamond drilling program on the Marban Mine Block property, located in the Malartic Gold Mining Camp, Quebec. The 2006 drilling program (63 holes for 10,000 metres) tested 6 separate gold zones on the property, namely the Norlartic North-North, North and Main Zones, the Kierens Zone, the Gold Hawk Zone, and the Marban Mine.
Highlights:
• Assay results were received for 10 holes completed in late fall to further investigate the near surface potential of the Norlartic Main Zone and the Kierens Zone, located along the Norbenite Shear;
• Past mine production from the Norlartic and Kierens Mines amounted to 260,000 ounces of gold (Aur Resources Inc. and MRNFQ files);
• Gold mineralization is generally found closely associated with a swarm of altered and mineralized intrusive dykes cross-cutting the Norbenite Shear;
• Two (2) holes (NL-06-035 and NL-06-036) investigated the west extent of the Norlartic Main Zone above -125 metres depth;
• Eight (8) holes (FC-06-001 to FC-06-008) tested the upper extent of the Kierens Zone above the mine workings, from surface to a depth of 135 metres;
• All 10 holes intersected thick, up to several tens of metres wide, gold mineralized sections that include higher-grade intervals in 5 of the 10 holes;
• Best intersections in grams per tonne gold (g/t Au) over core length metres (m) are:
- 30.39 g/t Au over 1.3 m and 7.75 g/t Au over 1.2 m (NL-06-035),
- 5.71 g/t Au over 5.5 m, including 14.79 g/t Au over 1.2 m (NL-06-036),
- 2.53 g/t Au over 19.3 m, including 9.96 g/t Au over 1.0 m and 8.96 g/t Au over 2.0 m (FC-06-002), and
- 9.77 g/t Au over 6.3 m, including 19.59 g/t Au over 1.8 m (FC-06-004);
• Results at a 1 g/t gold cut-off (except for FC-06-001) are tabulated in an appended table;
• Results for 15 holes completed on the Gold Hawk Zone will be released as soon as complete assay results are received.

NioGold is moving forward with mineral resource estimations of the Norlartic Main Zone and Kierens Zone with an emphasis on evaluating the lower grade bulk tonnage potential across the Norbenite Shear. The resources will be estimated using historic and NioGold drill holes. For this purpose, NioGold has re-sampled a total of 47 historic drill holes (20%) in the zones. Independent consultants Mine Development Associates of Reno, Nevada, have been mandated

to carry out the resource estimates compliant with National Instrument 43-101. As previously disclosed (refer to the October 12, 2006 press release) Aur Resources had reported in 1993 un-mined mineral inventories of 252,197 tonnes grading 5.11 g/t gold (41,422 ounces of gold) located east of the Norlartic Mine shaft and 261,269 tonnes grading 4.80 g/t gold (40,320 ounces of gold) located below the 1300-foot level (-395 metres) at the Kierens Mine. These historic mineral resources were estimated prior to the implementation of NI 43-101 regulations and should not be relied upon. These historic resources did not include the shallow gold mineralization defined at Kierens and the west extent of the Main Zone at Norlartic targeted by the 2006 drilling completed by NioGold.

NioGold Mining Corporation – « The Golden Highway Runs Through NioGold »
NioGold Mining Corporation is a junior exploration company primarily focused on GOLD. The Company’s main properties are the Camflo West and the Marban Mine Block located in the Malartic and Val-d’Or Mining Camps, with a historic production of 25 million ounces of gold. The camps presently encompass several active advanced exploration and mine development projects such as Canadian Malartic (Osisko Exploration), Kiena (Wesdome), Midway (Northern Star Mining), Goldex (Agnico-Eagle) and Lac Herbin (Alexis Minerals). The Marban Mine Block encompasses three former gold producers, namely Norlartic, Kierens (First Canadian), and Marban Mines that collectively produced 592,265 ounces of gold (Aur Resources Inc. and MRNFQ files).

Norbenite Shear 2006 Drilling Results
(1 g/t gold cut-off)
Hole # Line
(ft) Station
(ft) Az Dip Depth
(m) Mineralized
Zone From
(m) To
(m) Core Length
(m) Grade
(g/t gold)
NL-06-035 13+00 W 01+05 N 209º -74.2º 86.5 Norlartic Main18.0 23.5 5.5 2.88
including 21.2 22.4 1.2 7.75
47.0 48.3 1.3 30.39
NL-06-036 12+00 W 02+50 N 242º -62.7º 140.6 Norlartic Main63.6 69.1 5.5 5.71
including 67.9 69.1 1.2 14.79
89.0 95.3 6.3 2.05
FC-06-001 37+00 W 04+00 N 212º -51.9º 119.6 Kierens 88.0 97.7 9.7 0.53
FC-06-002 38+00 W 04+50 N 208º -64.7º 176.4 Kierens 124.0 143.3 19.3 2.53
including 131.2 132.2 1.0 9.96
including 138.0 140.0 2.0 8.96
FC-06-003 36+00 W 05+50 N 211º -59.1º 236.7 Kierens 126.0 128.8 2.8 3.09
144.6 159.5 14.9 1.86
171.4 177.5 6.1 2.75
including 174.9 175.8 0.9 6.53
FC-06-004 36+00 W 03+50 N 212º -57.4º 135.7 Kierens 62.7 69.0 6.3 9.77
including 62.7 64.5 1.8 19.59
including 66.5 68.0 1.5 14.91
FC-06-005 37+00 W 02+10 N 210º -61.9º 56.5 Kierens 19.0 51.5 32.5 1.15
including 25.7 33.0 7.3 2.45
FC-06-006 38+00 W 02+00 N 211º -67.8º 65.1 Kierens 18.4 20.2 1.8 4.68
35.8 46.00 10.2 2.44
FC-06-007 34+00 W 04+33 N 217º -65.2º 191.5 Kierens 131.0 135.0 4.0 1.45
148.5 155.2 6.7 1.50
FC-06-008 34+00 W 03+65 N 213º -50.0º 107.2 Kierens 67.4 68.4 1.0 1.97

nice results ... market likes the news as well.

Word is 2nd major newsletter coverage very soon.

Niogold is holding up very well.

BidAsk
OrdersVolumePrice
120,0000.275
325,0000.27
335,0000.265
318,0000.26
330,0000.255
437,5000.25
11,0000.245
418,0000.24
214,0000.235
478,7500.23
230,0000.22
235,0000.215
120,0000.19
372,5000.175
225,0000.165
115,0000.155
1100,0000.15

PriceVolumeOrders
0.2822,0002
0.28510,0001
0.2929,0003
0.29512,0001
0.3061,0005
0.3115,0002
0.3250,0003
0.335,0001
0.395,0001
0.4017,0002
0.428,0001
0.443,0001
0.4548,0001
0.545,0001
0.7110,0001

29 cents. this one continues to slowly but surely climb up.

I'm looking at a delayed quote, but NOX just touched .31.

better than 31. 32 cents. and still more holes to come, esp from gold hawk claims.

36 cents!