Gold producer, Northern Star Resources (ASX:NST) has raised $175 million with institutional investors and is planning to use the proceeds to fund its purchase of the Pogo underground gold mine in Alaska.
As result, the producer increased its FY19 guidance to the range of 850,000 to 900,000 ounces.
The placement was heavily oversubscribed with BlackRock Investment Management (UK) snapping up $57 million of new shares.
The company issued 26.1 million new shares in total at $6.70.
The total cost of the Alaskan mine is $347 million, with the balance to be funded from Northern Star’s cash reserves.
Shares in Northern Star Resources (ASX:NST) are trading 13.58 per cent higher to $7.91.