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Heliostar Metals Ltd V.HSTR

Alternate Symbol(s):  HSTXF

Heliostar Metals Ltd. is a Canada-based mid-tier gold producer. The Company is engaged in the acquisition, exploration, and development of mineral properties in North America. The Company is focused on developing the 100% owned Ana Paula Project in Guerrero, Mexico. The Ana Paula Gold Project is an advanced-stage, gold development project located in Guerrero State, Mexico. Its San Antonio Gold Project is an advanced stage gold development project located in Baja California Sur State, Mexico. Its Cerro Del Gallo Project is a gold-silver development project in the State of Guanajuato. The property comprises 14 titled concessions covering 15,276 hectares (ha), and surface rights to land totaling 445 ha. It owns 100% or has the option to acquire a 100% interest in three properties in the northern portion of Mexico's Sonora state: the Oso Negro project, the La Lola project, and the Cumaro project. The Company also operates the San Agustin mine, El Castillo mine, and La Colorada mine.


TSXV:HSTR - Post by User

Post by kojack1on Mar 03, 2023 5:02pm
169 Views
Post# 35318613

News out 😊

News out 😊

Heliostar Announces Upsize to Previously Announced Private Placement to C$20.4M (US$15M)

Vancouver, Canada, March 3, 2023 – Heliostar Metals Limited (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1) (“Heliostar” or the “Company”) is pleased to announce that, in connection with the non-brokered private placement announced on January 17th, the Company has increased the size of the previously announced offering to 92,750,000 units (each, a “Unit”) of the Company at a price of C$0.22 per Unit for gross aggregate proceeds of up to approximately C$20,400,000 (US$15,000,000) (the “Offering”).

Each Unit will consist of one common share in the capital of the Company (each, a “Common Share”) and one-half of one non-transferable Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall entitle the holder thereof to purchase one additional Common Share (each, a “Warrant Share”) at an exercise price of C$0.30 per Warrant Share for a period of thirty-six (36) months following the date of issuance (the “Date of Issue”).

The updated Offering is scheduled to close on or about the 9th of March and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSXV.

The Company intends to use the net proceeds from the Offering to acquire and advance the Ana Paula development stage, gold project (the “Ana Paula Project”) as well as for working capital and general corporate purposes. See below for more information on the proposed Ana Paula Project acquisition.

Financing Details

Finder fees may be paid to eligible finders consisting as cash fees and non-transferable broker warrants (each, a “Broker Warrant”) in an amount up to 6% of the gross process raised by such finder. Each Broker Warrant, if issued, shall entitle the holder thereof to purchase one additional Common Share (each, a “Broker Warrant Share”) at an exercise price of C$0.30 per Broker Warrant Share for a period of twenty-four (24) months following the Date of Issue.

All securities issued in connection with the Offering shall be subject to a statutory hold period expiring four months and one day after the Date of Issue, as set out in National Instrument 45102 – Resale of Securities.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or to U.S. Persons (as that term is defined in Rule 902(k) of Regulation S), nor shall this press release be construed to constitute such an offer or solicitation in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or under any U.S. state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act, as amended, and applicable state securities laws.

Acquisition Summary:

  • Heliostar has entered into definitive agreements with Argonaut Gold Inc. to acquire the Ana Paula Gold Project and option the San Antonio gold project in Mexico (collectively, the “Transaction”).
  • Ana Paula is permitted for an open pit mine with measured and indicated (M&I) mineral resources of 1.46 Moz gold at 2.17 g/t gold and 3.27 Moz silver at 4.8 g/t silver.1
  • San Antonio is a high grade oxide resource containing M&I mineral resources of 1.73 Moz of gold grading 0.83 g/t gold.2
  • The purchase price for Ana Paula is US$10.0M cash. Subsequent milestone payments, are comprised of US$10.0M of cash payments and US$10.0M of cash or share payments.

Ana Paula Project1

  • Proven and probable mineral reserves of 1,021,000 ounces of gold at 2.36 g/t gold and 2,254,000 ounces of silver at 5.22 g/t silver.
  • High grade gold project with potential to be an open pit or underground mine.
  • Permitted for an open pit mine.
  • Estimated US$75,000,000 of historic exploration and development expenses.
  • Existing mine infrastructure including a 412 metre long decline in place.
  • 142,000 metres of drilling in 333 holes.

San Antonio Project2

  • Measured and indicated mineral resources of 1,735,000 ounces of gold at 0.83 g/t gold.
  • High grade oxide gold project.
  • Located in a historic mining district on the Baja California peninsula.
  • 102,000 metres of drilling in 589 holes.

For additional information on the acquisitions of the Ana Paula and San Antonio projects (together, the “Acquisitions”), please see the Company’s news release dated December 5, 2022 filed under Heliostar’s profile on SEDAR.

Statement of Qualified Person

Stewart Harris, P.Geo., a Qualified Person, as such term is defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), has reviewed the scientific and technical information that forms the basis for this news release and has approved the disclosure herein. Historical information contained in this news release cannot be relied upon as Stewart Harris has not prepared nor verified such information.

Sources

  1. Alio Gold Inc., Ana Paula Gold Project NI 43-101 Technical Report Amended Preliminary Feasibility Study with effective date 16 May 2017.
  2. Argonaut Gold Inc., NI 43-101 Technical Report on Resources San Antonio Project with effective date 1 September 2012

About Heliostar Metals Ltd.

Heliostar is a junior mining company with a portfolio of advanced high-grade gold projects in Mexico and Alaska.

Upon completion of the Transaction, the Company intends to focus on developing the 100% owned Ana Paula Gold project in Guerrero, Mexico. In addition, Heliostar is working with the Mexican government to permit the San Antonio Gold project in Baja Sur, Mexico. Finally, the company continues efforts to expand the resource at the Unga Gold Project in Alaska, United States of America.

The Ana Paula deposit contains proven and probable mineral reserves of 1,021,000 ounces of gold at 2.36 g/t gold and 2,254,000 ounces of silver at 5.22 g/t silver. 1 A Preliminary Feasibility Study was completed in 2017, the asset is permitted for open-pit mining. 1 The asset contains significant existing infrastructure including a portal and 412 metre long decline.1

San Antonio is a high-grade oxide gold deposit containing measured and indicated mineral resources of 1,735,000 ounces of gold at 0.83 g/t gold. 2 A Preliminary Economic Assessment for Argonaut was completed in 2012.

Unga is an advanced vein district containing the SH-1 gold deposit within a large, prospective vein field. SH-1 contains inferred minerals resources of 384,00 ounces of gold at 13.8 g/t gold.

For additional information please contact:

Charles Funk

Chief Executive Officer

Heliostar Metals Limited

Email: charles.funk@heliostarmetals.com


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