Northern Star Resources is set fully underwrite an entitlement offer for Western Australian-based miner PolarX to the tune of $4.9 million.
The funds will go towards enabling PolarX to secure an 80 per cent interest in the US Caribou Dome gold project, part of the larger Alaska Range gold project.
The offer will also aid PolarX in further exploration and development of Alaska Range, as well as progressing the Humboldt Range gold project in Nevada, US.
PolarX is undertaking a fully underwritten non-renounceable pro rata entitlement offer at an issue price of 1.2 cents per new share.
The price reflects a 14.3 per cent discount on the closing price of the company’s shares of 1.4 cents per share on February 22 2024.
Northern Star, a 10.6 per cent PolarX shareholder, will underwrite 409,904,194 fully paid ordinary shares.
Unless extended, the entitlement offer will close on March 27 2024.
PolarX has undertaken significant drilling at Caribou Dome since 2015, with resource estimates substantially upgraded in June last year to include PolarX’s drilling, test work and structural interpretation.
The Humboldt Range project is situated between two large-scale active mines – the Florida Canyon gold mine and the Rochester silver-gold mine.
PolarX acquired the project in 2021, and has since significantly extended its bounds and resource estimate.
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