Northstar Gold Corp. (CSE:NSG) said it has completed the first tranche of its previously-announced C$1.6 million non-brokered private placement of company units, raising gross proceeds of C$905,100.21.
The exploration properties developer noted that proceeds from the sale of the flow-through shares will be used to incur eligible Canadian Exploration Expenses at its 100%-owned, flag-ship Miller gold property near Kirkland Lake, Ontario, its adjoining Rosegrove gold property, and the Milestone copper-nickel-cobalt property, while proceeds raised from the non-flow-through component will also be used for exploration work on the Miller gold property as well as general working capital.
The first tranche of the placement was comprised of 5,288,826 company flow-through units, for a total of C$449,550.21, and 6,074,000 non-flow-through units totaling C$455,550.
READ: Northstar Gold announces C$1.6M non-brokered private placement financing
The flow-through units were priced at C$0.085 and comprised of one flow-through common share and one non-flow-through share purchase warrant, with each full warrant being exercisable for one non-flow-through common at an exercise price of C$0.10 for a period of 24 months.
The non-flow-through units, meanwhile, were priced at C$0.075 and were comprised of one common share plus one share purchase warrant, with each full purchase warrant being exercisable into common shares at a price of C$0.10 for a period of 24 months.
Northstar also said it paid a total of C$30,535 in finders fees associated with the offering and issued 368,295 finder warrants with exercise prices of C$0.075 and C$0.085 expiring 24 months from the closing date of the offering.
It added that three company directors participated in the offering.
As well, Northstar revealed Miller gold property exploration highlights that included results of an Exploration Target Study as a precursor to a Mineral Resource Estimate.
“The company now has third- 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 Gold CEO Brian Fowler said in a statement.
“Northstar is one step closer to achieving our corporate strategy of defining a +1 million ounce gold resource at Miller,” Fowler added.
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 Sean at sean@proactiveinvestors.com