Alberta Star boosts financing to $10.5 million

Vancouver – Strong market conditions have prompted Alberta Star Development (ASX-V) to more than double its previously announced brokered private placement, up to $10.5 million.

The financing, through brokerage firm Pacific International Securities, has the company issuing up to 10 million flow-through units at 45 apiece and 15 million non-flow-through units at 40 per unit. Flow-through units are comprised of a flow-through share and a half-warrant, with each full warrant exercisable into a non-flow-through share at 75 for two years. Each non-flow-through unit consists of one non-flow-through share and a half-warrant, with each full warrant exercisable for two years into an additional share at 65.

Funds are primarily earmarked for the Contact Lake project on the eastern shore of Great Bear Lake in the Northwest Territories. The property is in close proximity to two past producing mines: the Echo Bay mine (almost 24 million oz. silver) and the Eldorado mine (15 million pounds of uranium and 8 million oz. silver). Revised exploration rationale has Alberta Star examining Contact Lake as an IOCG (iron-oxide copper-gold) project.

The company recently received a Class A drill permit for Contact Lake, valid for 5 years. Sahtu Land and Water Board approval from the came following extensive consultations with Sahtu Dene First Nations representatives.

Trading in Alberta Star has soared since early-August from the 20 per share level to 60 on high volumes. With its 38.6 million shares outstanding, the company posts a $23 million market capitalization.