Heliostar Fully Repays Acquisition Loan Within 3 Months.
TSX.V: HSTR
OTCQX: HSTXF
Heliostar Fully Repays Acquisition Loan Within 3 Months.
Vancouver, Canada, February 13, 2025 – Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1)
(“Heliostar” or the “Company”) is pleased to announce that it has repaid the US$5M loan obtained from
Deans Knight Capital Management Ltd on November 6th, 2024. The loan was used to acquire the portfolio
of operating and development assets in Mexico from Florida Canyon Gold Inc.
Heliostar CEO Charles Funk commented, “Repayment of this loan is another significant milestone for
Heliostar. In November 2024, the Company completed the acquisition of producing gold assets with a clear
upside for less than one percent equity dilution by taking on debt. Using debt was assessed to be the best
outcome for shareholders to minimize dilution . Making the repayment earlier than had been expected,
within approximately three months of the asset acquisition, speaks to the free cash flow generation from
our operating mines and the Company’s fiscal discipline. Looking forward, being debt-free allows all profits
generated from operations to be reinvested directly into our Company’s growth. This reinvestment will
focus on expanding production and growing resources across our portfolio throughout 2025.”
Debt Facility Details
On November 6th, 2024, the Company entered into purchase agreements for up to US$5 million in senior
secured term notes from Deans Knight Capital Management Ltd. on behalf of certain investors. The notes
were to mature on November 30th, 2026, and the drawn portion bore interest at 15% per annum.
Heliostar fully drew the notes on November 6 th, 2024. The Company repaid US$2 million in December
2024 and the remaining US$3 million in February 2025 to extinguish the notes and the associated security
pledges.
About Heliostar Metals Ltd.
Heliostar aims to grow to become a mid -tier gold producer. The Company is focused on increasing
production and developing new resources at the La Colorada and San Agustin mines in Mexico, and on
developing the 100% owned Ana Paula Project in Guerrero, Mexico.
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
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
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TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1
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 Company’s goal of becoming a mid -tier producer , the
Company’s discipline and the free cashflow generation from our operating mines, all profits generated
from operations to be reinvested directly into our Companies growth and this reinvestment will focus on
expanding production and growing resources across our portfolio.
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
public health crises; the ec onomic 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 Company’s public disclosure d ocuments. 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
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595 Burrard Street, Suite 1723, Vancouver BC, V7X 1J1, Canada -- Tel +1 236 429 9306
TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1
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 reflect changes in assumptions o r changes in circumstances or any other events
affecting such statements or information, other than as required by applicable law.