Blue Star Gold Announces Issuance of Loan Bonus Shares
Blue Star Gold Announces Issuance of Loan Bonus
Shares
Vancouver, British Columbia--(Newsfile Corp. - June 17, 2020) -
Blue Star Gold Corp.
(TSXV: BAU) (FSE: 5WP) (the
"
Company
") announces that it has entered into unsecured loan agreements (the "
Loan Agreements
") with certain parties for
an aggregate principal amount of $1,000,000 (the "
Loans
").
The Loans bear an annual simple interest rate of 7.5%.
Pursuant to the Loan Agreements and subject to the approval of the TSX Venture Exchange, the Company has agreed to issue
up to 4,000,000 common shares (the "
Bonus
Shares
") of the Company at a deemed price of $0.05 per Bonus Share.
The
aggregate number of Bonus Shares equal 20% of the principal amount of the Loans.
Dr. Georg Pollert, a director and controlling shareholder of the Company, will receive up to 3,000,000 Bonus Shares.
As a result,
the issuance of the Bonus Shares is 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 upon the "
Fair Market Value Not More
Than $2,500,000
" exemption from the formal valuation and minority shareholder approval requirements, respectively, under MI
61-101.
All securities issued are subject to a four month hold period pursuant to securities laws in Canada.
About Blue Star Gold Corp.
Blue Star is a Vancouver-based gold and silver company focused on exploration and development within Nunavut, Canada.
The
Company, through its subsidiary, Inukshuk Exploration Inc. ("
Inukshuk
"), owns the highly prospective 8,015 ha
Hood River
gold concessions
located contiguous with the Ulu mining lease.
Inukshuk acquired its interest in the Hood River property
through a renewable, 20-year Mineral Exploration Agreement with Nunavut Tunngavik Incorporated ("
NTI
") which holds
subsurface title to Inuit Owned Lands ("
IOL
").
The Hood River property located within the CO-20 IOL parcel is administered by
the NTI through the HOODRIVER-001 MEA signed between Inukshuk and NTI dated June 01, 2013.
Blue Star has recently
acquired the
Ulu Gold Property
, an advanced gold and silver project and with regulatory approvals has completed the
transmittal of the mining lease and assignment of the permits and licenses.
Together with the Hood River concessions, Blue Star
controls nearly 10,000 ha of prospective mineral claims within which the Company has identified more than 40 gold occurrences.
Blue Star has 142,595,846 common shares outstanding and is listed on the TSX Venture Exchange under the symbol:
BAU
and
on the Frankfurt Exchange under the symbol:
5WP
.
For information on the Company and its projects, please visit our website:
www.bluestargold.ca
.
For further information, please contact:
Peter Kuhn, Interim CEO
Telephone:
604.347.6999
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.
Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation.
Forward-looking information includes, but is not limited to, statements with respect to the issuance of Bonus Shares.
Generally, forward-looking information can be identified by the use of forward-looking terminology such as "may be",
"intends" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-
looking statements are based on the opinions and estimates of management as of the date such statements are made and
they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be
materially different from those expressed or implied by such forward-looking statements or forward-looking information,
including: the receipt of all necessary regulatory approvals, capital expenditures and other costs, and financing and
additional capital requirements. Although management of the Company have attempted to identify important factors that
could cause actual results to differ materially from those contained in forward-looking statements or forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements
and forward-looking information. The Company will not update any forward-looking statements or forward-looking information
that are incorporated by reference herein, except as required by applicable securities laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/58067