NuStar raises $7m from UK institution

West Perth mining and exploration company NuStar Mining Corporation Ltd will place 99 million new ordinary shares to a London based institutional investor, raising approximately $7 million.

Proceeds from the placement will primarily be used to accelerate down dip reserve expansion drilling at its wholly owned Paulsens gold project situated 180km west of Paraburdoo in Western Australia's Ashburton Mineral Field.

The capital raised will also be used to step up regional exploration.

Additionally, a portion of Paulsens project debt may be retired, with a reduction in repayments targeted to match the timing of capital expenditure on development of merger partner Intrepid Minerals' high grade gold-silver Kamila open pit mine in San Juan Province, Argentina.

The placement is priced at 7 cents per share and comes with one option for every two ordinary shares issued. The options are exercisable at 8.75 cents and have a 20 month term.

The new shares are to be issued this week.