By Devika Patel
Knoxville, Tenn., July 14 - Northern Star Mining Corp. said it has increased a private placement of subscription receipts to approximately C$25 million from C$20 million. The deal priced July 7.
The company plans to sell a combination of unit subscription receipts at C$0.50 apiece and flow-through subscription receipts at C$0.65 apiece.
Each unit subscription receipt will automatically convert into one unit of one common share and one half-share warrant. Each whole warrant is exercisable at C$0.70 for three years.
The warrants may expire sooner if the volume weighted average price of the company's shares exceeds C$1.10 for 15 consecutive trading days. In that case, the warrants will expire 30 days after the company notifies holders.
Each flow-through subscription receipt will automatically convert into one flow-through common share.
The deal will be conducted by a syndicate of agents led by Casimir Capital LP.
Proceeds will be used placed in escrow until the company completes its planned refinancing of the $42 million senior secured notes that were sold to Computershare Trust Co. on Aug. 13.
If these escrow release conditions are not satisfied by Aug. 31, 2009, the full amount of the financing, along with any accrued interest, will be returned to the purchasers.
Upon completion of the financing, the company will prepay up to C$15 million of its senior secured notes from the proceeds. The balance of the proceeds will be used to fund further exploration of the company's mineral resource properties, capital expenditures and for general working capital purposes.
Settlement is expected July 23.
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.
|
| Issue: | Subscription receipts, convertible into units of one common share and one half-share warrant and flow-through shares
|
| Amount: | C$25 million (approximate)
|
| Pricing date: | July 7
|
| Upsized: | July 14
|
| Settlement date: | July 23
|
| Stock symbol: | TSX Venture: NSM
|
| Stock price: | C$0.60 at close on July 6
|
| Market capitalization: | C$61.7 million
|
|
|
| Unit receipts
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.70
|
|
|
| Flow-through receipts
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| Price: | C$0.65
|
| Warrants: | No
|
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