Global-scale Australian gold miner Northern Star has agreed to fully underwrite exploration and development company PolarX’s entitlement offer that seeks to raise about A$4.92-million.
PolarX will offer 409.9-million shares at a discounted 1.2c a share to eligible shareholders on a 1:4 basis.
The offer proceeds will secure PolarX’s ownership of Caribou Dome, in Alaska, and fund exploration and development at the Alaska Range project, as well as the Humboldt Range project, in Nevada.
Northern Star has owned and operated its Pogo gold mine since 2018. Pogo is situated north-east of PolarX’s Alaska Range project.
Northern Star is an existing 10.6% shareholder of PolarX and has agreed, pursuant to an underwriting agreement, to be allocated any new shares not subscribed for in the entitlement offer or through the shortfall offer.