Lake Shore Gold (LSG-T) has increased its ownership in Northern Superior Resources (SUP-V) to 25.5% by privately buying more than 6.7 million shares at 80¢ each.
Lake Shore says it bought the shares for investment purposes and may acquire more securities of Northern Superior in the future.
Northern Superior is a junior actively exploring for gold in Ontario and Quebec in the Superior geological province of the Canadian Shield. Last December, the company announced the discovery of significant gold-bearing mineralization during the initial phase of core drilling on the eastern half of the Ti-Pa-Haa-Kaa-Ning (TPK) gold project, in joint venture with Rainy River Resources (RR-V).
The fourth hole of a 10-hole program intersected 13.5 metres averaging 25.9 grams gold per tonne, starting from a depth of 149 metres on Target 3. TPK is 190 km northeast of Pickle Lake, Ont.
Rainy River can earn a 51% interest in TPK by spending $9.4 million in exploration over a three-year period and completing $1.5 million worth of private placement financings in Northern Superior.
Since announcing the discovery hole, Northern Superior has raised $18.6 million in several private placement deals underwritten by a syndicate of agents led by Wellington West Capital Markets.
A fully-subscribed bought-deal private placement of 12.5 million shares was done at 80¢ apiece, while 2.6 million flow-through shares priced at $1.10 each were sold to investors in Ontario and 4.1 million flow-through shares priced at $1.40 were sold in Quebec.
Northern Superior is trading around 88¢ in a 52-week range of 10¢-$1.14, with 169.6 million shares outstanding.
Be the first to comment on "Lake Shore adds to position in Northern Superior (February 14, 2011)"