Northstar Gold Corp. (CSE:NSG) has announced a non-brokered private placement with a target of raising between $800,000 and $1.2 million, including approximately $200,000 in flow-through eligible funds.
The offering will be structured in tranches, with the first tranche of approximately $900,000 expected to close around November 8.
The financing includes two components: a critical minerals flow-through component and a non-flow-through component.
The flow-through component will consist of a minimum of 4.4 million units priced at $0.045 each, generating at least $200,000.
Each flow-through unit will comprise one flow-through common share and one non-flow-through share purchase warrant, with each warrant exercisable at $0.08 for 24 months.
The non-flow-through component will comprise 15 million units priced at $0.04 each, aiming for minimum gross proceeds of $600,000.
Each unit will consist of one common share and one warrant, with each warrant exercisable at $0.06 for 36 months.
The gross proceeds from the private placement will primarily be used to drill a newly defined 350-meter near-surface EM conductor located 600 to 900 meters southeast of the historic Cam Copper Mine on Northstar's Miller copper-gold property.
This zone could represent a southeast expansion of previously drilled VMS mineralization, the company believes.
Additionally, funds will support due diligence studies for potential property agreements related to the Boston Creek Mines and Philip Properties and help with ongoing due diligence for a collaboration with Hunan Nonferrous and Novamera.
The flow-through component of the private placement will be used to incur eligible Canadian exploration expenses, specifically critical minerals exploration and diamond drilling.