Alberta Star boosts financing to $10.5M

Vancouver — Strong market conditions have prompted Alberta Star Development (ASX-V) to more than double its previously announced brokered private placement, up to $10.5 million.

The financing, through brokerage firm Pacific International Securities, has the company issuing up to 10 million flow-through units at 45 apiece and 15 million non-flow-through units at 40 per unit. Flow-through units are comprised of a flow-through share and a half-warrant, with each full warrant exercisable into a non-flow-through share at 75 for two years. Each non-flow-through unit consists of one non-flow-through share and a half-warrant, with each full warrant exercisable for two years into an additional share at 65.

Funds are primarily earmarked for the Contact Lake project on the eastern shore of Great Bear Lake in the Northwest Territories. The property is in proximity to two past-producing mines: the Echo Bay silver mine, which produced almost 24 million oz. silver; and the Eldorado mine, which produced 15 million lbs. of uranium and 8 million oz. silver.

Revised exploration rationale has Alberta Star examining the Contact Lake area as an iron-oxide copper-gold (IOCG) project.

The company recently received a Class A drilling permit for Contact Lake. Sahtu Land and Water Board approval came following extensive consultation with the Sahtu Dene First Nation.

Trading in Alberta Star has soared since early-August from the 20 per share level to 60 on high volumes. With its 38.6 million shares outstanding, the company boasts a $23 million market capitalization.