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Northstar Gold Corp. Closes First Tranche of Critical Minerals Private Placement

Jul 19, 2024


Northstar Gold Corp. has closed the first tranche of its previously announced non-brokered private placement of units. 

The first tranche consisted of 1,850,000 Critical Minerals Eligible Flow Through Units and 3,607,112 Hard Dollar Units for a total of 5,457,112 Units, for aggregate gross proceeds of $254,820.03. Northstar has since received additional orders to close a second tranche in the near term. 

Flow Through Units were priced at $0.05 and comprised of one common share of the Company and one-half share purchase warrant. Each full Warrant is exercisable into one additional common share of the Company at an exercise price of C$0.10 for a period of 24 months. Hard Dollar Units were priced at $0.045 and comprised of one common share of the Company and one share purchase warrant. Each full Warrant is exercisable into one additional common share of the Company at an exercise price of C$0.08 for a period of 24 months.

The Company paid a total of $5,950 in finder fees associated with the Offering and issued 49,000 finder warrants at an exercise price of $0.05 expiring 24 months from the closing date of the Offering. All securities issued under the Offering are subject to a statutory four month hold period from the closing date under applicable Canadian securities laws.

The gross proceeds from the sale of the Flow-Through Shares will be used to incur eligible Canadian Exploration Expenses ("CEE") which will be used primarily to fund Critical Minerals exploration and diamond drilling a newly-defined, 350 metre long, 200 Siemens near-surface EM conductor, 600 – 900 metres southeast and along strike from the historic, high-grade Cam Copper Mine on Northstar's Miller Copper-Gold Property – See Northstar News Release dated May 16, 2024. This "Zone 2 Extension Conductor" is coincidental with several magnetic anomalies and possibly represents the southeast expansion of previously drilled Cam Copper VMS Zone 2 (14.8% copper over 2.5 metres in DDH CC03-23 - See Northstar News Release dated November 23, 2023). Zone 2 Extension Conductor possibly indicates copper-bearing volcanogenic massive sulphide (VMS) mineralization with potentially greater thickness. 

High-Grade VMS Copper and Silver Confirmed Over Zone 2 Extension EM Conductor and Magnetic Trend 470 metres along strike from Cam Copper 

Recent Northstar prospecting and select sampling southeast and along the newly defined Zone 2 Extension EM Conductor returned VMS-style copper and silver values ranging from 2.74% to 17.9% Cu and 2.9 g/t to 17 g/t Ag, respectively, from a historic, 3 metre wide, 20-metre-long trench and muck pile, 450 metres southeast of Northstar's high-grade Cam Copper Mine drill hole intercepts (Figure 1). Copper, silver grades and trace element geochemistry signatures are very similar to the Zone 2 drill hole intercept in DDH CC03-23 grading 14.8% Cu over 2.45m. Little bedrock exposure exists between this drill hole intercept and the newly discovered surface trench 470 metres towards the southeast, demonstrating excellent potential for the continuous extension of Cam Copper Mine Zone 2. 

Prospecting further east, along the strike of the main 200 Siemens conductor discovered anomalous copper, zinc, lead and silver mineralization (26.4 g/t Ag) associated with what appears to be a polymetallic volcanogenic exhalite horizon (Au-Ag-Cu-Pb-Zn) hosting semi-massive pyrite with chalcopyrite, sphalerite and galena, extending for at least 600 metres along surface. The high conductance of this horizon cannot be fully explained on surface, as pyrrhotite and graphite are largely absent, while chalcopyrite is the only highly conductive mineral present in any abundance. This implies a higher concentration of chalcopyrite and zone expansion at depth, more proximal to possible VMS vent areas. Northstar is positioning to drill test the Zone 2 Extension and 200S Conductors in Q3, 2024.

Please click here to view today's Proactive Investors video with Steve Darling and Brian Fowler, CEO, President and Director of Northstar Gold Corp. 

South Boston Creek Copper Trend Consolidation

Non-Flow through proceeds will provide for due diligence of the neighboring Boston Creek Mines and Philip Property, subject to a recently signed Letters of Intent (LOI) with Boston Creek Mines Ltd. and private vendors, respectively. The Boston Creek Mines Property contains 2 historic high-grade copper shaft mines along the northwestern half of the South Boston Creek Copper Trend, immediately adjacent to the Miller Copper-Gold Property. Three recently defined near-surface EM survey conductors on the Miller Copper-Gold Property, believed to represent near-surface volcanogenic massive sulphides (VMS) horizons, extend southeast onto the Philip Property, with the central conductor extending as much as 350 metres across the property line. 

Northstar's LOI agreements effectively consolidate the 4 kilometre long South Boston Creek Copper Trend prior to drill testing the new 200 Siemens EM conductors, providing the Company an exploration buffer zone, 6-month exclusivity period and 1-year Right of First Refusal to conduct due diligence studies and negotiate possible acquisition terms. Proceeds raised from the Non-Flow Through Component will also be used for non-critical minerals exploration work on the Miller Copper-Gold Property and for general working capital. The Company intends to renounce the Qualifying Expenditures to subscribers of Flow Through Units for the fiscal year ended December 31, 2024. and to incur the necessary Qualifying Expenditures on or before December 31, 2025, in accordance with regulatory requirements.

Image removed.

Figure 1. Boston Creek Copper Belt - EM Conductors and Recent High-Grade Cu/Ag Grab Sample Results

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6839/216924_ef3d7b83a4f3b959_002full.jpg

 



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