North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Redstar Gold Corp. Aug. 23 reported that Eric Sprott has agreed to acquire 30 million Redstar shares through a non-brokered private placement of up to 41 million shares at C10 cents each.

The financing will involve two tranches that are expected to close before the end of August.

Upon full closing of the financing, Sprott will control roughly 12.1 percent of Redstar's shares.

Redstar Chairman Jacques Vaillancourt also will invest in the private placement.

No warrants will be offered in respect to the financing.

"Mr. Sprott is a highly respected and well-known leader in the resource investment community and one of the world's premiere gold and silver investors.

The company will begin plans to initiate its next drilling program on the high-grade Shumagin gold zone at our 100 percent controlled Unga gold project in Alaska," said Redstar President and CEO Peter Ball.

In addition to drilling at Shumagin, Redstar will use the proceeds to continue exploration across other known gold zones at Unga; complete an updated NI 43-101 technical report for the Southwest Alaska project; and for general working capital.

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Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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