Heliostar Announces Increase to Previously-Announced Private Placement to up to $7 Million
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1090 West Georgia Street, Suite 700, Vancouver BC, V6E 3V7, Canada -- Tel +1 236 429 9306
TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1
HELIOSTAR ANNOUNCES INCREASE TO PREVIOUSLY-ANNOUNCED PRIVATE
PLACEMENT TO UP TO $7 MILLION
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Vancouver, Canada, June 30, 2023 – Heliostar Metals Ltd. (TSXV:HSTR) (the “ Company”) is pleased to
announce today that it has agreed with Clarus Securities Inc. (“ Clarus”), as lead agent, on behalf of a
syndicate of agents including PI Financial Corp. and Roth Canada, Inc. (collectively, the “ Agents”), to
increase the size of its previously announced $5,000,000 “best efforts” private placement offering being
made pursuant to the listed issuer financing exemption (the “Listed Issuer Financing Exemption”) under
Part 5A of National Instrument 45 -106 – Prospectus Exemptions (“NI 45-106”). Pursuant to the upsized
deal terms, the Agents have agreed to sell, on a “best efforts” private placement basis, up to 14,324,324
units of the Company (the “ Units”) to be priced at $0.37 per Unit (the “ Brokered Offering”) for gross
proceeds of up to $5,300,000, being the maximum amount permissible under the Listed Issuer Financing
Exemption. Each Unit is comprised of one common share in the capital of the Company (“Common Share”)
and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant
will entitle the holder thereof to purchase one Common Share for a period of 18 months following the
Closing Date ( as defined below), at an exercise price of $0.50 for a period of six months following the
Closing Date, after which time the exercise price will increase to $0.70 for the remaining term of the
Warrant.
Due to strong investor demand, in addition to the Brokered Offering, the Company intends to complete a
concurrent non-brokered private placement to accredited investors under Section 2.3 of NI 45 -106 (the
“Non-Brokered Offering”, and together with the Brokered Offering, the “ Offering”) of up to 4,594,594
units of the Company, on the same pricing terms and conditions as the Offering, for additional gros s
proceeds of up to $1,700,000.
The Company intends to use the net proceeds of the Offering to continue the exploration and
development work on its Ana Paula Project in Guerrero, Mexico, as well as general corporate working
capital purposes.
The Offering is scheduled to close on or about July 11, 2023, and is subject to certain conditions including,
but not limited to, the receipt of all necessary approvals in cluding the approval of the TSX Venture
Exchange (“TSXV”). Subject to compliance with applicable regulatory requirements and in accordance
with NI 45-106, the Units will be offered for sale to purchasers resident in Canada, except Quebec, and/or
other jurisdictions agreed to between the Company and Clarus. The Units offered pursuant to the Listed
Issuer Financing Exemption will not be subject to resale restrictions pursuant to applicable Canadian
securities laws. All other Units issued pursuant to the Offering will be subject to the statutory hold period
of four months and one day from the date of issuance in accordance with applicable Canadian securities
laws.
There is an amended offering document dated the date hereof related to the Brokered Offering that can
be accessed under the Company’s profile at www.sedar.com and on the Company’s website at
www.heliostarmetals.com. Prospective investors should read this offering document before making an
investment decision.
TSX.V: HSTR
OTCQX: HSTXF
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1090 West Georgia Street, Suite 700, Vancouver BC, V6E 3V7, Canada -- Tel +1 236 429 9306
TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1
The securities offered have not been regist ered under the U.S. Securities Act of 1933, as amended (the
“U.S. Securities Act”), and may not be offered or sold to, or for the account or benefit of, persons in the
“United States” or “U.S. persons” (as such terms are defined in Regulation S under the U.S. Securities Act)
absent registration under the U.S. Securities Act and all applicable state securities laws or compliance with
an applicable exemption from such registration requirements. This news release shall not constitute an
offer to sell or the so licitation of an offer to buy nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful.
Stewart Harris, P.Geo., a Qualified Person, as such term is defined by National Instrument 43 -101 –
Standards of Disclosure for Mineral Projects , has reviewed the scientific and technical information that
forms the basis for this news release and has approved the disclosure herein
About Heliostar Metals Ltd.
Heliostar is a junior mining company with a portfolio of high-grade gold projects in Mexico and Alaska.
The Company is focused on developing the 100% owned Ana Paula Project in Guerrero, Mexico. In
addition, Heliostar is working with the Mexican government to permit the San Antonio Gold Project in
Baja California Sur, Mexico. The Company continues efforts to explore the Unga Gold Project in Alaska.
The Ana Paula Project deposit contains proven and probable mineral reserves of 1,081,000 ounces of gold
(630,000 proven and 451,000 probable ounces) at 2.38 grams per tonne (“g/t”) gold and 2,547,000 ounces
of silver at 5.61 g/t silver (1,322,000 proven and 1,226,000 probable ounces). The project measured and
indicated resources of 1,46 8,800 ounces of gold (703,800 measured and 765,000 indicated ounces) at
2.16 g/t gold and 3,600,000 ounces of silver (1,637,000 measured and 1,963,000 indicated ounces) at 5.3
g/t silver. The project is permitted for open -pit mining and contains significant existing infrastructure
including a portal and a 412-metre-long decline.
For additional information please contact:
Charles Funk
Chief Executive Officer
Heliostar Metals Ltd.
Email: [email protected]
Rob Grey
Investor Relations Manager
Heliostar Metals Ltd.
Email: [email protected]
Cautionary Statement
This news release includes certain "forward -looking statements" under applicable Canadian securities
legislation. Forward-looking statements include, but are not limited to, risk factors relating to the timely
receipt of all regulatory and third party appr ovals for the Offering, including that of the TSX Venture
Exchange, that the Offering may not close within the timeframe anticipated or at all or may not close on the
terms and conditions currently anticipated by the Company for a number of reasons includi ng, without
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1090 West Georgia Street, Suite 700, Vancouver BC, V6E 3V7, Canada -- Tel +1 236 429 9306
TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1
limitation, as a result of the occurrence of a material adverse change, disaster, change of law or other failure
to satisfy the conditions to closing of the Offering; the inability of the Company to apply the use of proceeds
from the Offering as anticipated; the size of the Offering, the issuance of the Units pursuant to the Listed
Issuer Financing Exemption, the Company's objectives, goals or future plans, statements, exploration results,
potential mineralization, the estimation of mineral reso urces, exploration and mine development plans,
timing of the commencement of operations and estimates of market conditions. Forward-looking statements
are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and
future events to differ materially from those expressed or implied by such forward-looking statements. All
statements that address future plans, activities, events or developments that the Company believes, expects
or anticipates will or may occur are forward -looking information. 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. When considering this forward-looking information, readers should keep in mind the risk factors
and other cautionary statements in the Company’s disclosure documents filed with the applicable Canadian
securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in the
disclosure documents could cause actual events or results to differ materially from those described in any
forward-looking information. The Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise, except as
required by law.
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 news
release. No stock exchange, securities commission or other regulatory authority has approved or
disapproved the information contained herein.