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VANCOUVER, BC, April 14, 2021 /CNW/ - Heliostar Metals Ltd.
(TSXV: HSTR) (OTCQX: HSTXF) (FRA: RGG1) ("Heliostar" or the
"Company") is pleased to announce that it has amended its
agreement with Canaccord Genuity Corp., as lead agent, on behalf of
a syndicate of agents including Sprott Capital Partners LP, Agentis
Capital and Haywood Securities Inc. (collectively, the
"Agents") to increase the size of its marketed private
placement of Units to a new total of up to 5,348,616 Units for
total gross proceeds of up to C$5,616,047 (the "Revised
Offering"). As previously announced in the Company's
press release of April 8, 2021, the
offering was originally to consist of up to 3,809,524 Units with
aggregate gross proceeds of up to C$4,000,000 (the "Original
Offering"). The size of the Agent's over-allotment option
remains unchanged at 571,429 Units.
In the Revised Offering, the Company proposes to issue up to
5,348,616 Units at a price of $1.05
per Unit. 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 be exercisable for one
Common Share at an exercise price of $1.70 for a period of 12 months following the
Closing Date.
The Warrants may be accelerated by the Company, at its sole
option, at any time after the closing date of the Offering provided
that the daily volume-weighted average trading price of the common
shares of the Company on the TSX Venture Exchange is greater than
or equal to $2.00 for a period of 15
consecutive trading days, by giving notice to the holders thereof
and, in such case, the Warrants will expire at 4:00pm (Toronto
time) on the 30th day after the date on which such notice is given
by the Company in accordance with the terms of the Warrants.
The Company intends to use the net proceeds from the Offering to
advance the Company's Alaskan and Mexican projects, as well as for
working capital and general corporate purposes.
The Offering is scheduled to close on or about April 29th, 2021 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 and the securities regulatory authorities.
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 there be
any sale of the securities 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 is a junior exploration and development company with a
portfolio of high-grade gold projects in Alaska and Mexico. The company's
flagship asset is the 100% controlled Unga Gold Project on Unga and
Popof Islands in Alaska. The project hosts an intermediate
sulfidation epithermal gold deposit, located within the
district-scale property that encompasses 240km2 across
the two islands. Additional targets on the property include
porphyry, high sulphidation and intermediate sulphidation
epithermal veins. On Unga Island,
priority targets include: the SH-1 and Aquila, both on the Shumagin Trend, the former
Apollo-Sitka mine, which was
Alaska's first underground gold
mine and the Zachary Bay porphyry gold-copper prospect. Gold
mineralization at the Centennial Zone is located on neighbouring
Popof Island within four kilometres of infrastructure and services
at Sand Point.
In Mexico, the company owns
100% of three early stage epithermal projects in Sonora that are highly prospective for gold
and silver. Cumaro forms part of the El Picacho district, while the Oso Negro and
La Lola projects are also prospective for epithermal gold-silver
mineralization.
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.
Forward-Looking Information. This release includes
certain statements that may be deemed "forward-looking
statements". Forward-looking statements are statements that
are not historical facts and are generally, but not always,
identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "would", "may",
"could" or "should" occur. Forward-looking statements in this
press release include Heliostar's plans to conduct and complete the
Offering and the timing thereof, and the proposed use of
proceeds. Although Heliostar believes that the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not a guarantee of
future performance and actual results may differ materially from
those in the forward-looking statements. Factors that could cause
the actual results to differ materially from those in
forward-looking statements include market prices, exploitation and
exploration successes, weather, continued availability of capital
and financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements.
Forward-looking statements are based on the beliefs, estimates and
opinions of the Company's management on the date the statements are
made. Except as required by applicable securities laws, the Company
undertakes no obligation to update these forward-looking statements
in the event that management's beliefs, estimates or opinions, or
other factors, should change.
SOURCE Heliostar Metals Ltd.
