Intrepid Mines

Market Cap: $11,374,037

Aktienanzahl: 177,719,324 + ca.100 Mio wg. Paulsons Gold Mine

Der Kurs reagierte Positiv. Auf jeden Fall hat ist es eine profitable Mine mit niedrigen Produktionkosten, aber hat nur noch 128700 Oz. Res. und sie müssen 200 AUD Royalty bezahlen bis sie 60000 Oz. produziert haben.

13-05-2010
A$3.5m Capital Raising for the
Paulsens Gold Mine Acquisition
Key Points
* Northern Star to raise up to A$3.5m via a Placement, Share
Purchase Plan (SPP) and early exercise of short-dated
options

* Proceeds to provide working capital for the operation of the
high-grade 128,700oz Paulsens Gold Mine in WA’s Pilbara
region and for the costs associated with the acquisition.

* Capital raising to consist of:
o Placement of up to 25m shares at $0.05 per share to
raise up to A$1.25m;
o SPP at $0.05 per share to raise up to A$1.25 million;
and
o Early exercise of $0.025 & $0.05 options to raise up to
A$1.0m

* Majority of equity expected to be issued to existing
shareholders

* Funds required for acquisition of Paulsens Gold Mine to be
raised via debt instrument

Overview
Northern Star Resources Ltd (ASX: NST – “NST”) is pleased to outline details of a
proposed A$3.5 million capital raising to help fund working capital and for the costs
associated with the acquisition of the Paulsens Gold Mine, in Western Australia’s
Pilbara region.
Paulsens is a high- grade, low cost mine which has yielded more than 370,000 ounces
at an average cash operating cost of less than A$550/oz since commencing
production in 2005. The acquisition – from ASX-listed Company Intrepid Mines (ASX:
IAU) – will provide NST with a direct entry into the Australian gold business and will
provide the Company with immediate cashflow following financial takeover of the
project next month.
The capital raising will be via a placement of up to 25 million shares issued at $0.05 to
raise $1.25 million, a $2,000 Shareholder Purchase Plan (SPP) issued at $0.05 to
raise $1.25 million and by existing shareholders exercising their $0.025 and $0.05
options early to raise up to $1 million.
Funds required for the acquisition of the Paulsens Gold Mine will be provided solely
through a debt instrument. At this stage the Board does not anticipate any further
equity to be issued in this transaction.
Equity Raising Details
NST will undertake the capital raising on the following terms:
(1) Progressive placement of up to 25 million shares at $0.05 per share to raise $1.25 million less costs. The placement is being made to sophisticated investors pursuant to the "excluded offer" provisions (Section 708) of the Corporations Act 2001;
(2) Shareholder Purchase Plan (SPP) to allow eligible shareholders the opportunity to subscribe for up to $2,000 worth of shares. The SPP will be offered at $0.05 per share to raise up to $1.25 million. NST is currently exploring internal opportunities to underwrite the SPP and will issue a timetable once finalised; and
(3) Exercise of existing shareholder $0.025 and $0.05 options, which is expected to raise up to $1 million. The Company has already received indications for approximately $0.5 million of the expected $1 million. NST anticipate all the $0.025 options to be paid up before their expiry on 4th September 2010. Directors Michael Fotios, Bill Beament and Peter Farris have also committed to the early exercise of $0.025 incentive options which do not expire until the 4th September 2011.
As outlined, the majority of the equity issued for this transaction will be via existing shareholders. NST has appointed the Viridian Equity Group as lead manager in relation to the debt funding package with the details of this package to be released in due course.
NST has paid the initial deposit of $250,000 to Intrepid Mines Limited as per the binding agreement to purchase the Paulsens Gold Mine.
Exercise of Short-Dated Options
Last year NST completed a re-capitalisation which included the introduction of InvestMet Limited, a substantial financial, technical and operational syndicate to the share register. A major part of the restructure was to install a flexible funding platform by way of short-dated options issued to existing shareholders that enables up to $6.3M in funding to pursue acquisitions and develop assets.
Under the existing option structure:
* 35.8m options exercisable at $0.025, majority expire on 4th Sep 2010, which can raise $0.9 million. The company has received multiple option exercise forms from shareholders and anticipate the full amount before their expiry.
* 35.8m options exercisable at $0.05, majority expire on 4th Sep 2011, which can raise $1.8 million. The company has also received multiple option exercise forms from shareholders, 16 months before their expiry.
* 35.8m options exercisable at $0.10, majority expire on 4th Sep 2012, which can raise $3.6 million.
InvestMet Limited has stated their intention to exercise options as necessary to support the acquisition.
Background to Paulsens Acquisition
NST recently signed a legally binding agreement to purchase the Paulsens Gold Mine in Western Australia's Pilbara from Intrepid Mines Limited (IAU) – see ASX release dated 6 May.
Under the terms of the agreement NST will pay $15 million in cash - effectively reimbursing IAU for the costs associated with developing the Stage 1 mine plan.

NST will also pay a performance-based production royalty of $200 for every ounce of gold sold up to a maximum 60,000 ounces, capping the royalty at $12 million.

IAU has recently invested $14 million to extend the mine life for a further 45,000 ounces (Stage 1 mine plan) which NST anticipates will generate surplus cash of $25 million at a gold price of A$1,200/oz.

An additional $1 million cash surplus is generated for every $A25/oz increase in the gold price received above A$1,200/oz for the stage 1 mine plan. NST will be the sole financial beneficiary of this surplus cash from 1 June 2010 the date from which processing is expected to resume.


Yours faithfully,
Bill Beament
Managing Director
Northern Star Resources Ltd