TriStar Announces $5.0 Million Non-Brokered Private Placement with Auramet
TriStar Announces $5.0 Million Non-Brokered
Private Placement with Auramet
Scottsdale, Arizona--(Newsfile Corp. - March 31, 2022) - TriStar Gold Inc. (TSXV: TSG) (OTCQX:
TSGZF) ("TriStar" or the "Company") is pleased to announce a non-brokered private placement in which
Auramet Capital Partners LP ("Auramet") has agreed to subscribe for and purchase 25,000,000
units of
the Company (the "Units") at a price of $0.20 per Unit for gross proceeds to the Company of $5.0 million
(the "Offering").
Each Unit will consist of one common share in the capital of the Company (each a
"Common Share") and one-half of one common share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant shall entitle the holder to acquire an additional Common Share at an exercise
price of $0.30 for a period of 24 months following the closing of the Offering.
The Company has the right
to accelerate the warrant exercise if i) the Company's share price trades over $0.40 per common share
for 30 consecutive days; and ii) the Company has obtained its Preliminary License for its Castelo de
Sonhos gold project.
As a result of the Offering, Auramet will hold approximately 9.8% of the issued and outstanding shares of
the Company.
"We are very pleased that Auramet has chosen to partner with TriStar to advance our
Castelo de Sonhos gold project in Pará State, Brazil," said Nick Appleyard, President and CEO of
TriStar. "We view Auramet as a sophisticated financial market participant and see its investment as
further validation of the value we see at Castelo de Sonhos."
The Company intends to use the net proceeds of the Offering to further advance its Castelo de Sonhos
gold project and for general working capital purposes.
INFOR Financial Inc. acted as financial advisor in connection with this Offering.
The Company may pay
finder's fees in cash or shares to eligible finders.
All securities issued pursuant to this Offering will have a
hold period expiring four months and one day after the closing date.
The Offering is scheduled to close on or around April 14, 2022, and is subject to certain conditions
including, but not limited to, receipt of all regulatory approvals, including the approval of the TSX Venture
Exchange.
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.
About Auramet
Auramet Capital Partners LP is the investment affiliate of Auramet International LLC, one of the largest
physical precious metals merchants in the world with over $22 billion in annual revenues and provides a
full range of services to all participants in the precious metals chain, from extraction and production to
manufacturing and consumption. Auramet International LLC is a private company established in 2004 by
a team who had worked previously together since 1989. Their business is comprised of three main
activities: physical metals trading, metals merchant banking and advisory. The company has built a
consistently successful and prominent franchise in the metals space on the back of an experienced
management team that has proven to be innovative and capable of delivering the highest quality service
to participants in the sector. In fiscal year 2020, it purchased over 6 million ounces of gold, 70 million
ounces of silver and 3.2 million ounces of PGMs. The company has also provided term financing
facilities in excess of $900 million to date in the mining sector and set up its affiliate Auramet Capital
Partners LP last year,
looking to grow its capital investment business in equity, royalties and streams in
the precious metals and battery-related metals mining space.
For more information on Auramet please visit
www.auramet.com
.
About TriStar
TriStar Gold is an exploration and development company focused on precious metals properties in the
Americas that have the potential to become significant producing mines. The Company's current flagship
property is Castelo de Sonhos in Pará State, Brazil. The Company's shares trade on the TSX Venture
Exchange under the symbol
TSG
and on the OTCQX under the symbol
TSGZF
. Further information is
available at
www.tristargold.com
.
On behalf of the board of directors of the company:
Nick Appleyard
President and CEO
For further information, please contact:
TriStar Gold Inc.
Nick Appleyard
President and CEO
480-794-1244
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. No stock exchange, securities commission or other regulatory authority has approved or
disapproved the information contained herein.
Forward-Looking Statements
Certain statements contained in this press release may constitute forward-looking statements under
Canadian securities legislation which are not historical facts and are made pursuant to the "safe
harbour" provisions under the United States Private Securities Litigation Reform Act of 1995.
Generally, forward-looking information can be identified by the use of forward-looking terminology
such as "expects" or "it is expected", or variations of such words and phrases or statements that
certain actions, events or results "will" occur. Forward-looking statements in this press release include
all statements regarding the planned completion of the Offering and the planned use of proceeds of
the Offering. Such forward-looking statements are based upon the Company's reasonable
expectations and business plan at the date hereof, which are subject to change depending on
economic, political and competitive circumstances and contingencies. Readers are cautioned that
such forward-looking statements involve known and unknown risks, uncertainties and other factors that
may cause a change in such assumptions and the actual outcomes and estimates to be materially
different from those estimated or anticipated future results, achievements or position expressed or
implied by those forward-looking statements. Risks, uncertainties and other factors that could cause
the Company's plans to change include risks related to regulatory approval, changes in demand for
and price of gold and other commodities (such as fuel and electricity) and currencies; changes or
disruptions in the securities markets; legislative, political or economic developments in Brazil; the
need to obtain permits and comply with laws and regulations and other regulatory requirements; the
possibility that actual results of work may differ from projections/expectations or may not realize the
perceived potential of the Company's projects; risks of accidents, equipment breakdowns and labour
disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or
unanticipated expenses in development programs; operating or technical difficulties in connection
with exploration, mining or development activities; the speculative nature of gold exploration and
development, including the risks of diminishing quantities of grades of reserves and resources; and
the risks involved in the exploration, development and mining business. Although management of the
Company has 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. 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 applicable securities laws.
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https://www.newsfilecorp.com/release/118791