Northstar Gold Corp has announced a non-brokered private placement financing for aggregate proceeds of C$1.6 million.
The company said the offering includes a flow-through component of 10 million flow-through units at a price of $0.085 per unit for gross proceeds of up to $850,000.
Each flow-through unit is comprised of one flow-through share and one non-flow-through share purchase warrant, which is exercisable for one non-flow-through share at an exercise price of $0.10 for a term of 24 months after the closing.
READ: Northstar Gold says it has moved one step closer to over 1M ounce gold resource at its Miller project in Ontario
The offering also includes 10 million non-flow-through units at a price of $0.075 per non-flow-through unit for gross proceeds of up to $750,000.
Each non-flow-through unit is comprised of one share and one non-flow-through warrant, which is exercisable for one share at an exercise price of $0.10 for a term of 24 months after the closing.
Northstar said the financing is expected to close on or about October 31, 2022.
The company said the gross proceeds from the sale of the flow-through shares will be used to incur eligible Canadian exploration expenses at the company’s 100%-owned flagship Miller gold property.
The proceeds raised from the non-flow-through component of the offering will be used for exploration work on the Miller gold project and for general working capital.
Northstar highlighted its $4.4 million-plus spending on exploration at the Miller project, spotlighting the release of its SRK Miller Gold Property Exploration Target Model Study on July 26, 2022, as a milestone achievement for the company.
Northstar CEO Brian P Fowler said the company now had 3rd party validation that the Allied Gold Zone and Vein 1 Zone have the potential to host significant near-surface gold resources with expansion potential.
"Northstar is one step closer to achieving our corporate strategy of defining a plus 1 million ounce gold resource at Miller," Fowler said.
"Exploration Target Study results overlay less than 20% of the Miller gold property and do not include numerous additional gold exploration targets and recent discoveries. Northstar is positioning to conduct additional drilling on the Allied, Planet and Meilleur Syenite gold targets in a Phase III program, with a focus on Allied Gold Zone expansion drilling."
Grant of stock options
Further, the company announced that it has granted an aggregate of 856,000 stock options to certain directors, officers, employees and consultants of the corporation at an exercise price of $0.10, expiring five years from the date of grant.
The stock options are subject to the company's stock option plan and one-quarter of the stock options shall vest immediately, subject to a statutory four-month hold period, and the remainder in three additional and equal allotments on each anniversary of the date of grant, Northstar said.
Northstar Gold is focused on advancing exploration properties in the prolific Abitibi Greenstone belt and Kirkland Lake district in Ontario. The group's flagship asset is the wholly-owned Miller gold project, which is a resource stage property located 18 kilometres southeast of Kirkland Lake Gold's Macassa mine complex.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie