Northern Star Mining Corporation
TSX VENTURE : NSM

Northern Star Mining Corporation

May 24, 2006 16:23 ET

Northern Star Announces Closing of $14.3 Million Underwritten Financing

VAL D'OR, QUEBEC--(CCNMatthews - May 24, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Northern Star Mining Corp. (TSX VENTURE:NSM): Northern Star announces that it has completed its previously announced private placement offering of units of securities of Northern Star (the "Units") through MGI Securities Inc. and Orion Securities Inc. at a price of $1.10 per Unit. A total of 13,000,000 Units were issued for gross proceeds of $14.3 million. This total included 3,000,000 Units issued as a result of the full exercise of the underwriters' over-allotment option.

Each Unit consists of one common share and one-half of one share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at a price of $1.40 per share for a period of two years from the closing of the offering. If at any time following the first 6 months from closing the volume weighted average trading price of Northern Star's common shares is at least $2.20 per share for 10 consecutive trading days, Northern Star will have the right to provide notice to the holders of the warrants that the warrants will expire following a notice period of at least 30 days, unless the warrants are exercised during such notice period.

Northern Star will use the net proceeds from the offering to carry out further exploration and development work on its Midway Gold Project in Quebec and for general working capital requirements.

On behalf of the Board of Directors

Michel David, President

Northern Star Mining Corp.

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

Contact Information

  • Northern Star Mining Corp.
    Michel David
    President
    (819) 825-8088
    (819) 825-1199 (FAX)