Northstar Gold Corp. (CSE:NSG) said on Monday it has closed the first tranche of a previously announced non-brokered private placement, raising a total of C$855,700 to advance its Cam Copper Mine in Ontario.
The tranche included 7.35 million flow-through units for C$440,700, 3.3 million non-flow-through units for C$165,000, and C$250,000 through 10 “Royalty Units,” which grant investors a share of future free cash flow from the Cam Copper project, Northstar said.
Proceeds from the financing will fund a Zone 2 infill diamond drill program, metallurgical testing, a NI 43-101 Mineral Resource Estimate, permitting, engineering, and working capital.
The first tranche also saw participation from company insiders, with a second tranche expected to close shortly.
Northstar CEO Brian Fowler said the funds will support the company’s “Surgical Mining” pilot at the high-grade Cam Copper Zone 2, utilizing Novamera’s precision large-diameter drilling system with real-time downhole imaging and data analytics. The approach aims to minimize environmental impact, reduce capital expenditures, and accelerate time-to-cash flow.
The Cam Copper Zone 2 is interpreted to contain high-grade volcanogenic massive sulphide mineralization, with historic intercepts averaging 10% copper and recent drilling confirming up to 14.8% copper over 2.45 metres. Northstar plans to commission a NI 43-101 Technical Report to establish the project’s economic potential prior to production.
The project will also benefit from strategic partnerships with DIGITAL – Canada’s Global Innovation Cluster for digital technologies, Novamera, and Micon, which will provide partial funding to support data-driven and digital mining solutions.
Northstar expects the pilot program to extract approximately 116,000 tonnes of copper over 31 months using the Surgical Mining method, with minimal surface disturbance.