Blue Star Announces Second Tranche Issuance of Shares Pursuant to Loan Agreement
Blue Star Announces Second Tranche
Issuance of Shares Pursuant to Loan
Agreement
Vancouver, British Columbia--(Newsfile Corp. - October 25, 2024) -
Blue Star Gold Corp. (TSXV:
BAU) (OTCQB: BAUFF) (FSE: 5WP0) ("Blue Star" or the "Company")
announces that, further to its
news release of October 25, 2023, it has issued 98,451 common shares (the "
Shares
") at a deemed
price of $0.45 per Share which represents the second tranche of Shares owing pursuant to a renewal
agreement (the "
Agreement
") entered into with Dr. Georg Pollert, a director of the Company and a
controlling shareholder, in relation with a loan in the principal amount of $2,537,434 (the "
Loan
"), being
$2,435,542 as original principal and $101,892.40 as accrued interest. The Loan has a term of three
years and bears interest at 3% per annum.
Pursuant to the Agreement, the Company agreed to issue an aggregate of 295,354 Shares of the
Company to Dr. Pollert as a loan bonus payable in three tranches. The First 98,451 Shares were issued
on October 25, 2023 and the remaining 98,452 Shares are due to be issued by October 25, 2025.
The Shares are subject to a four-month and one day hold period pursuant to securities laws in Canada
and the Exchange Hold Period.
The issuance of the Shares pursuant to the Loan is considered a related party transaction (as defined
under Multilateral Instrument 61-101
Protection of Minority Security Holders in Special Transactions
("
MI 61-101
")). The Company relied on certain exemptions from the requirement to obtain a formal
valuation and minority shareholder approval, namely sections 5.5(a) and 5.7(a) of MI 61-101, as neither
the fair market value of the subject matter of, nor the fair market value of the consideration for, the
issuance of Shares exceeds 25% of the Company's market capitalization.
About Blue Star Gold Corp.
Blue Star is a mineral exploration and development company focused in Nunavut, Canada. Blue Star's
landholdings total 270 square kilometres of highly prospective and underexplored mineral properties in
the High Lake Greenstone Belt. The Company owns the Ulu Gold Project, comprised of the Ulu Mining
Lease and Hood River Property, and the Roma Project. A significant high-grade gold resource exists at
the Flood Zone deposit (Ulu Mining Lease), and numerous high-potential exploration targets (gold and
critical minerals) occur throughout the Company's extensive landholdings, providing Blue Star with
excellent resource growth potential. The site of the future deep-water port at Grays Bay is 40 - 100 km to
the north of the properties, and the proposed route corridor for the all-weather Grays Bay Road passes
close by the Roma and Ulu Gold Projects.
Blue Star is listed on the TSX Venture Exchange under the symbol: BAU, the U.S. OTCQB Venture
Market under the symbol: BAUFF, and on the Frankfurt Exchange under the symbol: 5WP0. For
information on the Company and its projects, please visit our website:
www.bluestargold.ca
.
For further information, please contact:
Grant Ewing, P. Geo., CEO
Telephone: +1 778-379-1433
Email:
Neither the 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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION
This press release contains "forward-looking statements" within the meaning of applicable securities
laws. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan,"
"goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should,"
"will" and similar references to future periods. Examples of forward-looking statements include, among
others, statements we make regarding prospective income and revenues, anticipated levels of capital
expenditures for the fiscal year, expectations of the effect on our financial condition of claims, litigation,
environmental costs, contingent liabilities, and governmental and regulatory investigations and
proceedings, and estimates of mineral resources and reserves on our properties.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead,
they are based only on our current beliefs, expectations, and assumptions regarding the future of our
business, plans and strategies, projections, anticipated events and trends, the economy, and other future
conditions. Because forward-looking statements relate to the future, they are subject to inherent
uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are
outside of our control. Our actual results and financial condition may differ materially from those indicated
in the forward-looking statements. Therefore, you should not rely on any of these forward-looking
statements. Important factors that could cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements include, among others, the following:
economic and financial conditions, including volatility in interest and exchange rates, commodity and
equity prices and the value of financial assets, strategic actions, including acquisitions and dispositions
and our success in integrating acquired businesses into our operations, developments and changes in
laws and regulations, including increased regulation of the mining industry through legislative action and
revised rules and standards applied by the regulatory bodies in Nunavut, changes in the price of fuel and
other key materials and disruptions in supply chains for these materials, closures or slowdowns and
changes in labour costs and labour difficulties, including stoppages affecting either our operations or our
suppliers' abilities to deliver goods and services to us, as well as natural events such as severe weather,
fires, floods and earthquakes or man-made or other disruptions of our equipment, and inaccuracies in
estimates of mineral resources and/or reserves on our mineral properties.
The securities referred to in this news release have not been, nor will they be, registered under
the United States Securities Act of 1933, as amended, and may not be offered or sold within the
United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an
applicable exemption from the U.S. registration requirements.
This news release does not constitute an offer for sale of securities for sale, nor a solicitation
for offers to buy any securities. Any public offering of securities in the United States must be
made by means of a prospectus containing detailed information about the company and
management, as well as financial statements.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/227779