Heliostar Announces $6M Financing with Eric Sprott
Heliostar Announces $6M Financing with Eric Sprott
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES OR TO U.S. PERSONS
Vancouver, Canada, October 7, 2024 – Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1)
(“Heliostar” or the “Company”) is pleased to announce a non-brokered private placement of 10,000,000
units (each, a “Unit”) at a price of $0. 60 per Unit for gross proceeds of $ 6,000,000 (the “ Private
Placement”).
Each Unit will consist of one common share in the capital of the Company (each, a “Common Share”) and
one-half of one non -transferable Common Share purchase warrant (each whole warrant, a “ Warrant”).
Each Warrant shall entitle the holder thereof to purchase one additional Common Share (each, a “Warrant
Share”) at an exercise price of $ 0.90 per Warrant Share for a period of 24 months following the closing
date of the Private Placement.
2176423 Ontario Ltd., a corporation beneficially owned and controlled by Mr. Eric Sprott, intends to
subscribe for the entire Private Placement.
The Private Placement is scheduled to close on or about October 11 , 2024 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 (the “TSXV”).
The Company will pay finder's fees to eligible finders in accordance with the policies of the TSXV.
The Company intends to use the net proceeds of the Private Placement for working capital and general
corporate purposes.
All securities issued pursuant to the Private Placement will be subject to a hold period of four months and
one day from the closing date of the Private Placement in accordance with applicable securities laws.
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 this press
release be construed to consti tute such an offer or solicitation 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 aims to grow to become a mid-tier gold producer. The Company is focused on developing the
100% owned Ana Paula Project in Guerrero, Mexico and has recently entered into an agreement to
acquire a portfolio of production and development assets in Mexico.
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
TSX.V: HSTR
OTCQX: HSTXF
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595 Burrard Street, Suite 1723, Vancouver BC, V6X 1J1, Canada -- Tel +1 236 429 9306
TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1
Charles Funk
President and Chief Executive Officer
Heliostar Metals Limited
Email: [email protected]
Phone: +1 844-753-0045
Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Email: [email protected]
Phone: +1 844-753-0045
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.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "Forward–Looking Statements" within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and "forward –looking information" under applicable
Canadian securities laws. When used in this news rel ease, the words "anticipate", "believe", "estimate",
"expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or
expressions, identify forward –looking statements or information. These forward –looking statements or
information relate to, among other things, the expected closing date of the Private Placement and the
intended use of proceeds of the Private Placement , exploration and development of the Company’s
projects and potential cash flow and production from the Company’s projects.
Forward–looking statements and forward–looking information relating to the terms and completion of the
Facility, any future mineral production, liquidity, and future exploration plans are based on management's
reasonable assumptions, estimates, expectation s, analyses and opinions, which are based on
management's experience and perception of trends, current conditions and expected developments, and
other factors that management believes are relevant and reasonable in the circumstances, but which may
prove to be incorrect. Assumptions have been made regarding, among other things, the receipt of
necessary approvals, price of metals; no escalation in the severity of public health crises or ongoing military
conflicts; costs of exploration and development; the est imated costs of development of exploration
projects; and the Company's ability to operate in a safe and effective manner and its ability to obtain
financing on reasonable terms.
These statements reflect the Company's respective current views with respect to future events and are
necessarily based upon a number of other assumptions and estimates that, while considered reasonable
by management, are inherently subject to significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors, both known and unknown, could cause actual results,
performance, or achievements to be materially different from the results, performance or achievements
that are or may be expressed or implied by such forward –looking statements or forward -looking
information and the Company has made assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation: precious metals price volatility; risks associated with the
conduct of the Company's mining activities in foreign jurisdictions; regulatory, consent or permitting
delays; risks relating to reliance on the Company's management team and outside contractors; risks
regarding exploration and mining activities; the Company's inability to obtain insurance to cover all risks,
on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate
sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and
unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical
recoveries and capital and operating costs of such projects; contests over title to pr operties, particularly
title to undeveloped properties; laws and regulations governing the environment, health and safety; the
ability of the communities in which the Company operates to manage and cope with the implications of
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595 Burrard Street, Suite 1723, Vancouver BC, V6X 1J1, Canada -- Tel +1 236 429 9306
TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1
public health crises; the economic and financial implications of public health crises, ongoing military
conflicts and general economic factors to the Company; operating or technical difficulties in connection
with mining or development activities; employee relations, labour unrest or unavailability; the Company's
interactions with surrounding communities; the Company's ability to successfully integrate acquired
assets; the speculative nature of exploration and development, including the risks of diminishing quantities
or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack
of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption
“Risk Factors” in the C ompany’s public disclosure documents. Readers are cautioned against attributing
undue certainty to forward –looking statements or forward -looking information. Although the Company
has attempted to identify important factors that could cause actual results to differ materially, there may
be other factors that cause results not to be anticipated, estimated or intended. The Company does not
intend, and does not assume any obligation, to update these forward –looking statements or forward -
looking information to r eflect changes in assumptions or changes in circumstances or any other events
affecting such statements or information, other than as required by applicable law.