Northern Superior Resources Inc. (TSX-V:SUP, OTCQX:NSUPF) announced that it is expanding its footprint in the Chibougamau Gold Camp in Quebec with the acquisition of three new properties.
The company has signed a binding term sheet with TomaGold Corporation to acquire the Hazeur, Monster Lake East, and Monster Lake West properties.
The acquisition will increase Northern Superior’s total land position in the region from 60,000 hectares to about 68,500 hectares.
The company highlighted that the Hazeur property is believed to represent a potential northwestern extension of Northern Superior’s flagship Philibert project, a joint venture with SOQUEM, and is located 9 km from IAMGOLD's Nelligan project.
The Monster Lake East and West properties flank IAMGOLD’s Monster Lake property and lie strategically between Northern Superior’s Philibert and Chevrier projects.
Simon Marcotte, Northern Superior CEO, said the acquisition would unlock the broader potential of the Chibougamau Gold Camp.
“Not only do these new properties host known gold mineralization and compelling exploration upside, but they also extend key geological structures directly linked to the Philibert deposit,” Marcotte said.
“Combined with recent drilling success and a growing resource base, Philibert is rapidly emerging as a cornerstone asset in a camp now coming into prominence on the global stage.”
The Hazeur property shows “strong evidence” for the continuation of Philibert-style mineralization, added Adree DeLazzer, Northern Superior vice president of exploration.
“Additionally, we now cover more than 30 kilometres along the highly prospective Fancamp Fault Zone and Monster Lake trends, where we plan to apply our evolving geological and structural models to identify and advance new discovery targets.”
Further, Northern Superior announced that it will raise $5 million via a private placement with Cormack Securities, which has agreed to purchase 6.5 million shares priced at $0.77 each.
The proceeds of the offering, expected to close on June 25, will be used for working capital and general corporate purposes.
Shares of Northern Superior added 9.5% on Tuesday morning in Canada to reach C$0.92 and US$0.68 in the US.