Northern Star Mining Corporation
TSX VENTURE : NSM

Northern Star Mining Corporation

October 12, 2005 09:46 ET

Northern Star Announces Financing For $7,000,000

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2005) - Northern Star Mining Corp. (TSX VENTURE:NSM)(the "Company") is pleased to announce that it has engaged MGI Securities (the "Agent"), pursuant to which the Agent will conduct a private placement offering of up to $7,000,000 on a best efforts basis. The offering consists of up to 11,111,111 flow-through shares at a price of $0.45 per share and 5,000,000 non-flow-through units at a price of $0.40 per unit. Each unit consists of one common share of the company and one-half of a non-transferable share purchase warrant. One warrant shall entitle the holder thereof to purchase one additional common share of the company for a period of 24 months from the closing date at a price of $0.50. The company also announces that an over-allotment of $2,000,000 can be exercised by the agent. The over-allotment can be any combination of flow-through shares or non-flow through units.

The Agent will be paid a commission of 7% of the gross proceeds and will be issued Agents' warrants equal to 10% of the number of units sold.

The financing proceeds will be used for working capital and exploration on the Company's Midway Project.

Completion of the financing is subject to regulatory approval.

ON BEHALF OF THE BOARD

"Michel David"

Michel David

President

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