Heliostar Metals Ltd V.HSTR

Hybernation, might be the solution.

[Ungawatcher]

Jacques put Redstar into hybernation mode when he felt Unga was worth keeping, instead of selling out.

I just wonder how much of that $7 million is still in the bank.

In order to hang onto Unga, they may have to freeze spending, stop drilling (if they haven't already) and operate at the bare minimum, so that can use what's left of that $7 million to maintain corporate operations while offering the Aleut Corporation additional leasing fees to extend their agreement. 

This may make it possible to stay afloat for at least 12 to 24 months, or when the merger or takeover happens.

If merging or selling HSTR is a viable option, I hope they can get at least $0.75-$1.00 CA for the whole company. Somehow I don't think they will sell or merge for less than $.75.

[deepthinker63]

The idea that they can pay out all those expenses and do a FS for AP just doesn't add up.  I would argue that doing a FS before expoloring the skarn makes no sense, in any case.  The plan must be to sell AP or sell both assets while maintaining some upside participation.

[Ungawatcher]

I haven't kept up to full speed, might be silly to ask, but what do you mean by "The Skarn"?

[deepthinker63]

There's a Brescia cone which extends from surface, which they're trying to better characterize now.  But, systems in the region feature high grade gold hornfels skarn at depth.  That's what Torex has.  Previous operators punched a couple holes and hit good results.  Alio's plan was to drill from the completed decline into the skarn, but ran out of money.  

[Ungawatcher]

Maybe Sprott's or Schiff's organizations (or both, or another) will come to the rescue, but that would mean giving them full control. Makes sense that Torex has been mentioned in this thread.

[kojack1]

Hibernation won't work as they owe money to Argonaut and management collects over million dollars a year in salaries, be broke in no time at all, Funk alone is close 1/2 million a year salary, plus where does it mention Torex is interested, I looked through all interviews and news releases and nothing, so I assuming it's speculation by people on board here, Torex can wait if they wanted

[Ungawatcher]

Kojak, you wrote: "Torex can wait if they wanted and buy us out for pennies if need be."  I haven't seen anything about Torex, except on this thread. You make a valid point about costs. That is why I've wondered how much cash they have on hand.  With Charles making about 425K and other Board Members including Jacques and of course those in the Corporate office as well