Northern Superior Resources Inc. (TSX-V:SUP, OTCQX:NSUPF) said it has increased the size of the financing related to its Ontario spinout company, ONGold Resources Ltd.
The surge in demand from prominent gold investors has prompted the parties involved to boost the financing from approximately C$3 million to over C$5.25 million, according to a statement from Northern Superior.
Upon the completion of the transaction, Northern Superior will hold 35,686,686 shares of 1348515 BC Ltd, or BCCo, valued at around C$18.2 million.
The transaction entails Northern Superior selling all its exploration properties located in Ontario, including the Ti-pa-haa-kaa-ning project and the October Gold property, to BCCo in exchange for common shares.
The transaction is expected to conclude around April 30, contingent upon Exchange approval and fulfilment of all conditions outlined in the Letter Agreement.
Post-transaction, common shares of ONGold are anticipated to trade on the TSX Venture Exchange under the symbol ‘ONAU’.
In addition to the financing, all 5,882,356 subscription receipts of BCCo have converted into common shares, generating proceeds of $3,078,605.56.
Furthermore, BCCo is set to close an additional tranche of its subsidiary Finco's offering of subscription receipts for gross proceeds of approximately $350,000 in mid-April 2024, bringing the total financing to approximately $5,252,305.56.