Northstar closes First Tranche of Private Placement for KL project
Northstar Gold Corp. has announce the company has closed the first tranche of its previously announced $2.5 million non-brokered private placement of units, for gross proceeds of CDN$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 "Non-Flow Through Units"). 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.
The Company 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.
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 18km 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, the recently acquired Searles Property and general working capital.
Surface exploration has commenced on the Company's 100%-owned Miller Gold and recently optioned and adjoining Searles Property. Detailed and fully funded exploration plans will be discussed in a separate and forthcoming news release.
Phase IIA Miller Drill Program
During the period March 15th - April 27th, 2021, Northstar drilled 1,990 metres (8 holes) in a Phase IIA program following up the 2020 near-surface bulk-tonnage Allied Syenite Gold Zone discovery (2 holes), near-surface confirmation drilling of the historic gold-telluride No. 1 Vein (2 holes) and 4 holes targeting geophysical and machine learning anomalies. Mineralized intercepts were obtained in all 8 Phase IIA drill holes.
On May 27th, 2021 Northstar announced partial results from drill hole MG21-56 in the Allied Syenite Gold Zone that included 6.6 g/t Au over 117m between 14m and 131m encompassing the Veins 1 - 4 zones, including 175 g/t Au over 0.6m between 14m and 14.6m, 24.9 g/t Au over 1.5m between 43m and 44.5m, and 1,170 g/t Au over 0.5m between 69.5m and 70m depth in drill hole MG21-56 within the Allied Syenite. Northstar continues to experience significant assay lab reporting issues and delays that the Company hopes will be resolved in the very near term. All additional Phase IIA drill results that will be reported when available.
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