Northern Gold Mining Inc., which is conducting exploration work in the Kirkland Lake region, has announced that its proposed $2.5-million private placement has been fully subscribed.
Bayfront Capital Partners Ltd. is the agent on the transaction, whose closure is subject to a number of conditions, including regulatory approval.
Net proceeds from the offering will be used for mineral exploration and working capital.
Northern Gold's central focus is the Garrison property, 40 kilometres north of Kirkland Lake, where the company may earn up to an 80 per cent interest under an option agreement with ValGold Resources Ltd.
The property covers 374 hectares along 2.5 kilometres of the Destor-Porcupine Fault Zone. An industry-compliant resource estimate filed by Northern Gold in October 2009 says the property contains an indicated resource of 253,100 tonnes grading 7.7 grams per tonne gold (g/t), and an inferred resource of 1.5 million tonnes grading 4.9 g/t gold.
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