Northstar Gold Corp. (CSE:NSG) has announced plans for non-brokered private placements to fund permitting, engineering, and the initial implementation of Novamera’s Surgical Mining system at its 100%-owned Cam Copper Project, located 18 kilometres southeast of Kirkland Lake, Ontario.
The financing will provide initial capital for the Cam Copper Zone 2 Surgical Mining pilot program, under a definitive Turnkey Surgical Mining Services Agreement signed with Novamera in October.
The offering includes up to C$500,000 in Critical Minerals Flow-Through Units at C$0.06 per unit, up to C$1 million in Non-Flow-Through Units at C$0.05 per unit, and up to C$1.5 million in Advance Royalty Units priced at C$25,000 per unit.
The Advance Royalty Units include a royalty-type interest in project cash flow and carry a 10% annual interest rate, with an option to convert to shares before commercial production.
A first tranche of about C$800,000 is expected soon, led by strategic investors, with another C$500,000 expected from directors and other investors.
If fully subscribed, the financing would raise up to C$3 million, with additional tranches planned as milestones are achieved. Northstar said it also anticipates potential non-dilutive grant support.
The proceeds will be used for a Zone 2 definition drilling program scheduled to begin in November, permitting, engineering, mine planning, site preparation, and a NI 43-101 Technical Report and Mineral Resource Estimate.
Under the agreement with Novamera, Northstar plans to extract about 116,000 tonnes of high-grade copper from the near-surface Zone 2 horizon over 31 months using Novamera’s precision drilling and imaging system.
The company intends to complete a NI 43-101 report to confirm the deposit’s economic potential before any production decision.
Brian Fowlder, Northstar CEO, president and director, said this financing marks the transition of the Cam Copper from concept to implementation.
“The first-tranche participation by strategic investors validates our approach and the project's critical minerals potential,” Fowler said.
“The 4× royalty-return structure provides investors direct exposure to near-term cash flow, with minimum dilution to current shareholders.
He added that the participation of Northstar's directors signals their confidence in the project's value.
“Together with Novamera's Surgical Mining technology, this financing creates a disciplined, low-impact path to exploit high-grade copper critical mineral deposits in Ontario,” Fowler concluded.