The shares were issued as part of a private placement closed in late November. An initial tranche of 3.3 million flow-through shares, also priced at 50 each, was printed at that time.
Canaccord Capital, which managed the financing, received cash and warrants in return for its efforts. The warrants expire in a year and entitle the firm to buy 440,000 shares at 50 apiece.
Net proceeds are earmarked for the Gold Eagle property in northwestern Ontario, where two recent drill holes pulled up several narrow intervals carrying up to 316 grams per tonne. Holes 2 and 7 were collared in the so-called Discovery zone.
Results are pending for holes 6-9.
Drilling will resume in January, with 16,000 metres planned. The campaign will target several zones, including Discovery.
Southern Star can earn a half-interst in the project by spending $2 million over the next two years. As part of the deal, it must pay $160,000 in cash and issue 3 million shares to
Southern Star now has 24.7 million shares issued and outstanding.
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