Northstar Gold Corp. (CSE:NSG) said it has closed the first tranche of its previously announced $2.5 million non-brokered private placement of units, for gross proceeds of C$1,572,220.
The offering was comprised of 2,999,806 flow-through units for a total of $929,939.86 and 2,293,856 non-flow through units, totalling $642,279.72.
The Flow-Through units were priced at $0.31 and comprised of one flow-through common share and one-half of one non-flow-through share purchase warrant. Each full warrant is exercisable for one non-flow-through common at an exercise price of $0.42 for a period of 24 months. The Non-Flow Through units were priced at $0.28 and were comprised of one common share and one-half of one share purchase warrant. Each full purchase warrant is exercisable into common shares at a price of $0.42 for a period of 24 months.
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The gross proceeds from the sale of the Flow-Through shares will be used to incur eligible Canadian Exploration Expenses (CEE) at the company's 100%-owned flag-ship Miller Gold Property and recently acquired Searles Property, situated 18 kilometres (km) southeast of Kirkland Lake, Ontario, and the company's Bryce Gold Property, situated 35 km to the southwest.
The company said it will renounce CEE effective on or before December 31, 2021. The proceeds raised from the Non-Flow Through component will also be used for exploration work on the Miller Gold Property, the recently acquired Searles Property and general working capital.
Northstar Gold said surface exploration has commenced on the company's 100%-owned Miller Gold and recently optioned and adjoining Searles Property.
The company noted that it paid a total of $71,880 in finders fees associated with the offering, issued 298,239 finder warrants with exercise prices of $0.28 and $0.31 and expiring 24 months from the closing date of the offering and issued 150,000 common shares to a certain finder who assisted the company as a financial advisor in connection with the offering.
Contact the author at jon.hopkins@proactiveinvestors.com