THIS NEWS
RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO
TSX Venture
SYMBOL: NSM
July 28, 2009
Northern Star Increases
Financing to CDN$23,212,458
Vancouver, B.C., July 28, 2009 – Northern Star Mining Corp (NSM: TSX-V) 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.
The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD
“Jonathan Awde”
Jonathan Awde,
VP Corporate Finance
FOR FURTHER INFORMATION PLEASE CONTACT: Northern Star Mining Corporation TOLL FREE (800)
460-5031 or (819) 825-8088, (FAX) (819) 825-1199
Website:
www.nsmgold.com
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