- Heliostar Metals (TSXV:HSTR), a Mexican gold and silver stock with assets spanning the mining life-cycle, has raised C$6 million from Canadian Mining Hall of Fame member Eric Sprott through a non-brokered private placement
- The company’s gold portfolio combines for 580,000 ounces of probable reserves, 3.5 million ounces of measured and indicated resources, and 1 million ounces of inferred resources
- Heliostar is a gold and silver explorer, developer and producer primarily active in Mexico
- Heliostar Metals stock has added 136 per cent year-over-year, but only 31.11 per cent since 2019
Heliostar Metals (TSXV:HSTR), a Mexican gold and silver stock with assets spanning the mining life-cycle, has raised C$6 million from Canadian Mining Hall of Fame member Eric Sprott through a non-brokered private placement.
Heliostar intends to use the funds for working capital and general corporate purposes to support its diversified operations, which are discussed in the “About” section below.
The company will issue 10 million units priced at C$0.60 each to 2176423 Ontario Ltd., a corporation Sprott owns and controls. Each unit consists of one common share and one-half of one non-transferable share purchase warrant, while each warrant entitles the holder to purchase one additional share for C$0.90 for 24 months after the closing date on or about Oct. 11, 2024.
The capital injection follows Sprott’s more than C$2 million investment in June as part of a previous non-brokered private placement.
All securities issued are subject to a hold period of four months and one day from the closing date in accordance with applicable securities laws.
About Heliostar Metals
Heliostar is a gold and silver explorer, developer and producer primarily active in Mexico. Its gold portfolio combines for 580,000 ounces of probable reserves, 3.5 million ounces of measured and indicated resources, and 1 million ounces of inferred resources.
The company’s two producing mines in Mexico, San Agustin and La Colorada, have posted combined production of almost 900,000 ounces of gold and more than 3.5 million ounces of silver going back more than a decade. Cash flow from the mines began to accrue to the company on July 11, 2024, upon finalizing a transaction with a recent Argonaut Gold spin-out company.
Its primary development property, the Ana Paula project in Guerrero, Mexico, houses 1.47 million ounces measured and indicated grading 2.16 grams per ton of gold and yielded a 2023 preliminary feasibility study detailing a US$464 million net present value at US$1,600 per ounce of gold.
The company also holds an exploration portfolio featuring inferred resources and bonanza-grade samples.
Heliostar Metals stock (TSXV:HSTR) last traded at C$0.59 per share. The stock has added 136 per cent year-over-year, but only 31.11 per cent since 2019.
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(Top photo of 2023 drilling at Heliostar Metals’ Ana Paula project in Mexico: Heliostar Metals)