- In the first tranche, the company issued 1,857,465 units for gross proceeds of $1,300,225.50
- Each unit consists of one common share and one half of one common share purchase warrant
- Heliostar intends to use the net proceeds from the offering to advance its Alaskan and Mexican projects
- Heliostar is a junior exploration and development company with a portfolio of high-grade gold projects in Alaska and Mexico
- Heliostar Metals Ltd. (HSTR) opened trading at C$0.80 per share
Heliostar Metals (HSTR) has closed the first tranche of its previously announced non-brokered private placement offering.
In the first tranche, the company issued 1,857,465 units for gross proceeds of $1,300,225.50.
Heliostar CEO, Charles Funk commented on the offering.
“This $4 million offering has received strong support; it is already over-subscribed and we intend to close on the balance over the next two weeks. The next step for Heliostar is to commence a 2,500 to 3,000 metre drilling on the recent Verde discovery at Cumaro, in Mexico, in November. The potential of the project based on the recently received assay results has caused us to prioritize this drill program for Q4, 2021. Heliostar has one of the most exciting portfolios of high-grade gold and silver projects in the industry and we expect that this financing will set the stage for news flow over the coming months.”
Each unit consists of one common share and one half of one common share purchase warrant. Each warrant is exercisable for one share at a price of $1.20 for a period of 24 months following the closing of the offering.
$40,675.53 in cash and 58,107 broker warrants were paid as finders’ fees to three qualified finders in connection with the completion of the first tranche of the offering.
Warrants and shares issued during the offering are subject to a four month and one-day restricted resale period.
Heliostar intends to use the net proceeds from the offering to advance its Alaskan and Mexican projects, focusing primarily on the proposed Cumaro drill program in Q4, 2021, as well as for working capital and general corporate purposes.
Heliostar is a junior exploration and development company with a portfolio of high-grade gold projects in Alaska and Mexico. The company’s flagship asset is the 100% controlled Unga Gold Project on Unga and Popof Islands in Alaska.
Heliostar Metals Ltd. (HSTR) opened trading at C$0.80 per share.