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TSX.V: HSTR
OTCQX:
HSTXF
VANCOUVER, BC, April
8, 2021 /CNW/ - Heliostar Metals Limited (TSXV: HSTR)
(OTCQX: HSTXF) (FRA: RGG1) ("Heliostar" or the
"Company") is pleased to announce that it has entered into
an agreement with Canaccord Genuity Corp., as lead agent, on behalf
of a syndicate of agents including Sprott Capital Partners LP and
Haywood Securities Inc. (collectively, the "Agents") for a
marketed private placement of up to 3,809,524 units (the
"Units") at a price of $1.05
per Unit for gross proceeds of approximately $4,000,000 (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 common
share purchase warrant (each whole warrant a "Warrant").
Each Warrant shall be exercisable for one Common Share at an
exercise price of $1.70 for a period
of 12 months following the Closing Date.
The Warrants may be accelerated by the Company, at its sole
option, at any time after the closing date of the Offering provided
that the daily volume-weighted average trading price of the common
shares of the Company on the TSX Venture Exchange is greater than
or equal to $2.00 for a period of 15
consecutive trading days, by giving notice to the holders thereof
and, in such case, the Warrants will expire at 4:00pm (Toronto
time) the 30th day after the date on which such notice is given by
the Company in accordance with the terms of the Warrants.
The Company has agreed to grant the Agents an over-allotment
option to sell up to an additional fifteen percent (15%) of the
Units offered in the Offering at the Offering Price, exercisable,
in whole or in part, at any time on or prior to the closing of the
Offering. If the over-allotment option is exercised in full, the
Company could sell up to an additional 571,429 Units for additional
gross proceeds of up to C$600,000 and
the aggregate gross proceeds of the Offering could be increased to
an aggregate of C$4,600,000.
The Company intends to use the net proceeds from the Offering to
advance the Company's Alaskan and Mexican projects, as well as for
working capital and general corporate purposes.
The Offering is scheduled to close on or about April 29th, 2021 and is subject to
certain conditions including, but not limited to, the receipt of
all necessary approvals including the approval of the TSX Venture
Exchange and the securities regulatory authorities.
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 there be
any sale of the securities 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.
About Heliostar Metals Ltd.
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. The project hosts an intermediate
sulfidation epithermal gold deposit, located within the
district-scale property that encompasses 240km2 across
the two islands. Additional targets on the property include
porphyry, high sulphidation and intermediate sulphidation
epithermal veins. On Unga Island,
priority targets include: the SH-1 and Aquila, both on the Shumagin Trend, the former
Apollo-Sitka mine, which was
Alaska's first underground gold
mine and the Zachary Bay porphyry gold-copper prospect. Gold
mineralization at the Centennial Zone is located on neighbouring
Popof Island within four kilometres of infrastructure and services
at Sand Point.
In Mexico, the company owns
100% of three early stage epithermal projects in Sonora that are highly prospective for gold
and silver. Cumaro forms part of the El Picacho district, while the Oso Negro and
La Lola projects are also prospective for epithermal gold-silver
mineralization.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Information. This release includes
certain statements that may be deemed "forward-looking
statements". Forward-looking statements are statements that
are not historical facts and are generally, but not always,
identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "would", "may",
"could" or "should" occur. Forward-looking statements in this
press release include Heliostar's plans to conduct and complete the
Offering, use of proceeds, the exercise of the over-allotment
option and the timing thereof. Although Heliostar believes
that the expectations expressed in such forward-looking statements
are based on reasonable assumptions, such statements are not a
guarantee of future performance and actual results may differ
materially from those in the forward-looking statements. Factors
that could cause the actual results to differ materially from those
in forward-looking statements include market prices, exploitation
and exploration successes, weather, continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or
developments may differ materially from those projected in the
forward-looking statements. Forward-looking statements are based on
the beliefs, estimates and opinions of the Company's management on
the date the statements are made. Except as required by applicable
securities laws, the Company undertakes no obligation to update
these forward-looking statements in the event that management's
beliefs, estimates or opinions, or other factors, should
change.
SOURCE Heliostar Metals Ltd.