Blue Star Gold Corp V.BAU

News

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Vancouver, British Columbia – June 2, 2022: Blue Star Gold Corp. (TSXV: BAU) (FSE: 5WP0) (OTCQB: BAUFF) (“Blue Star” or the “Company”) announces that, subject to the approval of the TSX Venture Exchange (the “Exchange”), it intends to complete a non-brokered private placement of up to $6,000,000.  Pursuant to the offering, the Company will issue common shares (each a “Share”) at a price of $0.65 per Share, flow-through common shares (each a “FT Share”) at a price of $0.73 per FT Share, and charitable flow-through common shares (each a “Charitable FT Share”) at a price of $0.91 per Charitable FT Share, in any combination, to raise up to $6,000,000 in gross proceeds (together, the “Private Placement”).

The Charitable FT Shares qualify as “flow through shares”, within the meaning of subsection 66(15) of the Income Tax Act (Canada) to be sold on a charitable flow-through basis.

Over 75% of the Private Placement has already been arranged based on firm expressions of interest received by the Company.

The Shares, FT Shares and Charitable FT Shares will be subject to a four-month and one day hold period pursuant to securities laws in Canada and, where applicable, the Exchange.  Finders’ fees may be payable to qualified parties.  The Company intends to use the net proceeds from the FT Share and Charitable FT Share private placement to incur Canadian exploration expenses (the “Qualifying Expenditures”) on its projects in Nunavut prior to December 31, 2023.  The Company will renounce the Qualifying Expenditures to subscribers of FT Shares for the fiscal year ended December 31, 2022.