Northern Superior said it had raised the money by issuing Ontario charity flow-through shares and hard-dollar shares. Flow-through share funds are earmarked for ongoing exploration of the Ti-pa-haa-kaa-ning (TPK) property near the Ring of Fire, in northern Ontario, in preparation for a drill programme this summer.
New Gold has agreed to buy five million shares in the company at $1.27 million, giving it a strategic foothold in the junior.
President and CEO Tom Morris said he was pleased with the "strong vote of confidence" from the board and management in purchasing 24% of the shares sold in the offering.
"The momentum behind the company and our exploration projects continues to increase," he said.
"We intend to initiate a core drill programme on the TPK property this summer, or as soon as we and our stakeholders on this project determine that the current COVID-19 pandemic has abated sufficiently to allow for the safe execution of the programme," he said.
TPK is a 47,796ha property 470km northeast of Thunder Bay, where the company has discovered gold, silver and copper. Besides TPK, Northern Superior has several exploration properties in the Chapais-Chibougamau area of western Quebec, including its main Croteau EST and Lac Surprise properties.
Northern Superior shares (SUP:TSXV) have gained 50% in the year to date despite a 6.7% drop Monday to C21c, which capitalises it at $9 million (US$6 million).