By Devika Patel
Knoxville, Tenn., Aug. 14 - Northern Star Mining Corp. said it took in $34 million from a private placement of units. It may sell an additional $8 million in units for total proceeds of $42 million.
Each unit consists of a $1,000 two-year transferable senior secured note and 750 transferable warrants.
Each warrant is exercisable at C$1.20 until Aug. 13, 2013.
The notes carry a 14% coupon and mature in two years at 125% of par.
Casimir Capital LP was the lead agent.
Proceeds will be used to carry out further surface and underground exploration and development work on Northern Star's Midway-Malartic Gold Project in Quebec and for general working capital requirements.
Vancouver, B.C.-based Northern Star is a development/advanced exploration stage company engaged in the acquisition, exploration and development of mineral properties in Quebec.
Issuer: | Northern Star Mining Corp.
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Issue: | Units of a $1,000 two-year transferable senior secured note and 750 transferable warrants
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Amount: | $42 million
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Units: | 42,000
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Price: | $1,000
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Warrants: | 750 warrants per unit
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Warrant expiration: | Aug. 13, 2013
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Warrant strike price: | C$1.20
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Agent: | Casimir Capital LP (lead)
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Settlement date: | Aug. 14 (for $34 million)
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Stock symbol: | TSX Venture: NSM
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Stock price: | C$0.70 at close Aug. 14
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Notes
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Maturity: | Two years
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Coupon: | 14%
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Price: | Par
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Yield: | 14%, plus 25% at maturity
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