Northstar Gold Corp (CSE:NSG) (OTCMKTS:NSGCF) has closed the first tranche of a C$2.7 million financing to fund exploration at its flagship Miller gold project in Kirkland Lake, Ontario, it announced Wednesday.
The first tranche of the non-brokered private placement consisted of nearly 4.3 million flow through units grossing C$1,381,200 and an additional 4.1 million non-flow-through units totalling C$1,034,375 for gross proceeds of around C$2.4 million.
Under the term sheet, the flow through units were priced at C$0.32 and comprised of one flow through share and one-half of one non-flow-through warrant exercisable at C$0.45 for an 18-month period. The non-flow-through units were priced at C$0.25 and comprised of one share and one-half warrant exercisable at C$0.40 for an 18-month period.
READ: Northstar Gold Corp announces non-brokered private placement financing for aggregate proceeds of up to $2,700,000
Additional proceeds will be used for exploration at the Bryce gold property, around 35 kilometres southwest of Kirkland Lake.
Vancouver-based Northstar paid C$143,474 in finders fees associated with the offering and issued 608,300 finder warrants with exercise prices of $0.25 and $0.32 and expiring 18 months from the closing date of the offering.
The firm said it is now fully funded for a planned Phase II drill program at Miller that is set to start in February 2021. The program is designed to follow up on gold discoveries made during 2020 and test new targets.
Northstar is also commissioning a technical report on its Bryce property, it added.
CEO Brian Fowler told shareholders that 2021 promises to be an “exciting” year for the junior company, which went public in early 2020.
"Our 2020 exploration efforts at Miller resulted in a number of significant gold discoveries and numerous new exploration targets have been defined,” Fowler said in a statement. “We are excited to get the drill spinning again early next year."
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