Vancouver, British Columbia, December 23, 2020. Northstar Gold Corp. (CSE:NSG) (“Northstar” or the “Company”), announces the Company has closed the first tranche of its previously announced $2.7 million non-brokered private placement of units (“Units”) for gross proceeds of CDN$2,415,575 (the “Offering”).
The Offering was comprised of 4,316,250 flow through units (“Flow Through Units”), for a total of $1,381,200 and 4,137,500 non-flow through units, totalling $1,034,375 (the “Non-Flow Through Units”). The Flow Through Units were priced at $0.32 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 $0.45 for a period of 18 months. The Non-Flow Through Units were priced at $0.25 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 $0.40 for a period of 18 months.
The Company paid a total of $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 gross proceeds from the sale of the Flow-Through Units will be used to incur eligible Canadian Exploration Expenses (“CEE”) at the Company’s 100%-owned flag-ship Miller Gold Property, situated 18 km southeast of Kirkland Lake, Ontario, and the Company’s Bryce Gold Property, situated 35 km to the southwest. The Company 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 and general working capital purposes.
Northstar Provides Corporate and Exploration 2020 Year-End Summary
Prior to going public by way of IPO on January 2, 2020, Northstar operated as a private gold exploration company for 11 years, spending more than $7 million on property acquisition and gold exploration in northeastern Ontario and more recently in the Kirkland Lake District. The Company’s flagship Miller Gold Property, situated 18 km southwest of Kirkland Lake Gold’s Macassa SMC gold mine, was acquired by staking in 2012 and received more than $2 million in exploration and drilling prior to this year. Northstar owns 3 additional properties in the region on a 100% basis, including the Bryce Gold Property where the Company spent more than $4 million in exploration and 22,500 metres of drilling between 2009 to 2013.
Northstar’s initial 2020 exploration focus at Miller was to validate and verify the historical database and refine geological and mineralized zone models and interpretation. This provided basis to follow-up previous exploration results, including a historical estimate on the No. 1 Vein of the Miller Independence Mine and new targets, by geophysics and drilling.