Northern Star Mining Corporation
TSX VENTURE : NSM

Northern Star Mining Corporation

July 28, 2009 18:08 ET

Northern Star Increases Financing to CDN$23,212,458

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 28, 2009) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Northern Star Mining Corp. (TSX VENTURE:NSM) is pleased to announce that further to its news release of July 24, 2009 it has completed a second closing of 1,350,000 unit subscription receipts (the "Unit Subscription Receipts") at a price of CDN $0.50 per Unit Subscription Receipt for additional gross proceeds of CDN $675,000.

In total, the Company has raised gross proceeds of CDN $23,212,458 (the "Financing") from the sale of 37,993,000 Unit Subscription Receipts at a price of CDN $0.50 per Unit Subscription Receipt for $18,996,500 and 7,528,497 flow-through subscription receipts (the "Flow-Through Subscription Receipts") at a price of CDN$0.56 per Flow-Through Subscription Receipt for CDN$4,215,958 through the syndicate of agents led by Casimir Capital L.P. and including Canaccord Capital Corporation and Wellington West Capital Markets Inc.

The gross proceeds of the Financing have been deposited in escrow with Computershare Trust Company of Canada, as subscription receipt agent, pending satisfaction of the release conditions on or before August 31, 2009 as more particularly described in the Company's news release of July 24, 2009 (the "Release Conditions").

Each Unit Subscription Receipt entitles the holder thereof to automatically receive, without payment of additional consideration, one unit of the Company (a "Unit") upon satisfaction of the Release Conditions. Each Unit will consist of one common share and one-half (1/2) of one transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at a price of CDN$0.70 for a period of 36 months from the date of issuance.

Each Flow-Through Subscription Receipt entitles the holder thereof to automatically receive, without payment of additional consideration, one "flow-through" common share of the Company upon satisfaction of the Release Conditions.

All securities issued pursuant to this second closing of the Financing are subject to a hold period of four months and a day expiring November 29, 2009.

ON BEHALF OF THE BOARD

Jonathan Awde, VP Corporate Finance

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Northern Star Mining Corporation
    Jonathan Awde
    VP Corporate Finance
    TOLL FREE (800) 460-5031 or (819) 825-8088
    (819) 825-1199 (FAX)
    www.nsmgold.com