- Heliostar Metals (HSTR) is acquiring a 1.4M ounce permitted gold deposit and an option for another 1.7M ounce gold deposit in Mexico
- The company signed an agreement with Argonaut Gold to acquire the Ana Paula Gold Project and option the San Antonio Gold Project in Mexico
- The purchase price for Ana Paula is US$10.0M cash and US$10.0M of cash or share payments
- Heliostar Metals (HSTR) is a junior exploration and development company with a portfolio of high-grade gold projects in Alaska and Mexico
- Heliostar Metals (HSTR) is trading at C$0.24 as of 3:58 pm ET
Heliostar Metals (HSTR) is acquiring a 1.4M ounce permitted gold deposit and an option for another 1.7M ounce gold deposit in Mexico.
The company entered a definitive agreement with Argonaut Gold to acquire the Ana Paula Gold Project and option the San Antonio Gold Project in Mexico.
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. 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.
The purchase price for Ana Paula is US$10.0M cash. Subsequent milestone payments include US$10.0M cash payments and US$10.0M in cash or share payments.
Heliostar CEO, Charles Funk, commented on the acquisition.
“The acquisition of this portfolio transforms Heliostar into a mine development company. This is a significant milestone towards our ultimate transformation into a high-margin gold mining company.”
The Ana Paula Gold Project and the San Antonio Gold Project are advanced-stage gold development projects. Each project offers a development pathway and advanced exploration targets that could unlock value for the shareholders into the future.
“Upon closing the transactions, our asset base of Ana Paula, San Antonio and Unga will contain 3.2 Moz of gold in the M&I categories and 0.5 Moz of gold in the inferred category. Heliostar now provides multiple unique levers, with two advanced development projects in Ana Paula and San Antonio and the Unga Project, which we continue to believe to be a project with significant high-grade resource upside. We believe these acquisitions will allow Heliostar to provide outsized returns for shareholders, including project de-risking, mine development, permitting, resource growth and discovery,” Funk added.
Heliostar Metals (HSTR) is a junior exploration and development company with a portfolio of high-grade gold projects in Alaska and Mexico.
Heliostar Metals (HSTR) is trading at C$0.24 as of 3:58 pm ET.