Northstar Gold Corp. (CSE:NSG) said it has closed the second tranche of its previously announced non-brokered private placement, lifting total proceeds from the financing to C$916,700.
The second tranche raised C$61,000 through the issuance of 600,000 flow-through units and 500,000 non-flow-through units, the company said. That follows a first tranche that brought in C$855,700, which closed in December.
Flow-through units were priced at C$0.06 and consist of one flow-through common share and one non-flow-through warrant, with each warrant exercisable at C$0.08 for 24 months. Non-flow-through units were priced at C$0.05 and include one common share and one warrant exercisable at C$0.05 over the same period.
The company said the financing provides initial capital to advance its Cam Copper Zone 2 Surgical Mining pilot project, which is being developed under a turnkey services agreement with Novamera executed in October. Additional project support is expected through a master project agreement involving Canada’s Global Innovation Cluster for digital technologies, Novamera and Micon International.
Proceeds will be used for metallurgical test work, permitting and engineering, mine planning and working capital, as well as the completion of a NI 43-101-compliant technical report and mineral resource estimate.
Northstar also said it has completed a Zone 2 infill diamond drill program at the Cam Copper Mine, drilling seven holes totaling 1,194 metres in December. The company expects to report assay results in late January.