Heliostar Metals arranges $12 million bought deal financing
Heliostar Metals Ltd. [HSTR-TSXV, HSTXF-OTCQX, RGG1-FRA] has announced details of a $12 million bought deal financing with proceeds earmarked for the company’s projects in Mexico, including drilling at Ana Paula gold project.
The company said an underwriting syndicate has agreed to purchase, on a bought deal basis, 12 million common shares, priced at $1 per share. The underwriters have been granted the option to purchase up to an additional 15% of the offering to cover over-allotments, if any, on the same terms. That option is exercisable at the offering price for 30 days from and including the date of closure, which is expected to occur on March 28, 2025. If the overallotment option is fully exercised, the total gross proceeds of the offering will be $13.8 million.
On Thursday, Heliostar shares eased 6.25% or $0.07 to $1.05 and trade in a 52-week range of $1.16 and 21.5 cents.
Heliostar is focused on developing the Ana Paula project. In addition, Heliostar is working with the Mexican government to permit the San Antonia Project in Baja California Sur, Mexico. The company has also said it continues with efforts to explore the Unga Project in Alaska.
Heliostar secured the Mexican assets in March, 2023, via the acquisition of Aurea Mining Inc., a unit of Argonaut Gold Inc., which held a 100% interest in the Ana Paula gold project in Mexico as well as an option to acquire a 100% stake in the San Antonio Gold project, which is also located in Mexico.
The Ana Paula Project deposit contains proven and probable minerals reserves of 1.08 million ounces of gold (630,000 proven and 451,000 probable ounces) at 2.38 g/t and 2.54 million ounces of silver at 5.61 g/t silver (1.32 million proven and 1.22 probable ounces).
Measured and indicated resources stand at 1.46 million ounces of gold at 2.16 g/t and 3.6 million ounces of silver at 5.3 g/t. The project is permitted for open pit mining and contains significant existing infrastructure, including a portal and a 412-metre-long decline.
In a press release on February 20, 2025, Heliostar announced additional results from the 100%-owned Ana Paula project, which is located in Guerrero State. The company said it has drilled 3,210 metres in phase one of the program and will follow-up the best results with the second phase program.
“Drilling at Ana Paula continues to demonstrate the deposit’s most unique aspect, long intervals of consistent high-grad gold mineralization,’’ said Heliostar CEO Charles Funk. “The drill program is both expanding the boundaries of the High-Grade Panel and infilling sections to upgrade resource classifications,’’ he said. “We continue to intersect satellite zones that are open to expansion, including 24 metres of grade 5.10 g/t gold over 150 metres below the base of the High-Grade Panel and 3.0 metres grading 21.4 g/t gold in the Parallel Panel,’’ he said. “These indicate that more infill drilling can add higher grade ounces to the Ana Paula resource model.’’