Northern Star Resources Underwrites PolarX Entitlement Offer

PolarX Limited (ASX: PXX) has announced that Northern Star Resources Limited (ASX: NST), an existing shareholder, has committed to fully underwrite a non-renounceable pro rata entitlement offer for the Company.

This offer entails 409,904,194 fully paid ordinary shares (New Shares) at an issue price of 1.2 cents per New Share, available to eligible shareholders on a 1:4 basis, aiming to raise approximately $4.92 million (before costs).

By Mr Peter Nesveda:

Key Points

The underwriting by Northern Star reflects a strong vote of confidence in PolarX’s future.

The funds raised will be allocated towards securing Caribou Dome ownership and financing exploration and development initiatives at Alaska Range and Humboldt Range.

  • The Entitlement Offer is a 1 for 4 fully underwritten non-renounceable pro rata offer, targeted to raise up to $4.92 million at an issue price of 1.2 cents per New Share.
  • The issue price represents a discount of 14.3% to the last closing price of 1.4 cents and 9.8% to the 10-day VWAP of 1.33 cents.
  • The Shortfall Offer will be open to Eligible Shareholders and third-party investors.

Northern Star Resources Limited, an existing 10.6% PolarX shareholder, has fully underwritten the offer.

The primary use of funds will include finalizing the acquisition of an 80% interest in the Caribou Dome property and conducting exploration programs at the Alaska Range Copper Gold Project and the Humboldt Range Gold Project.

About Northern Star Resources

Northern Star Resources is a global-scale Australian gold producer with a current market capitalization of approximately $15 billion. It operates three world-class gold production centres in Australia and North America, including the Pogo gold mine in Alaska, which is located near PolarX’s Alaska Range Project.

Use of funds

The funds will be utilized for various purposes including the acquisition of the Caribou Dome property, exploration and development activities, general working capital, and costs associated with the Entitlement Offer.

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