Heliostar raises $7 million for Mexico gold project

Share this article

Heliostar Metals Ltd. [HSTR-TSXV, HSTXF-OTCQX, RGG1-FRA] said it has raised $7 million from an upsized private placement offering. Proceeds of the offering will be used to fund exploration and development work the  Ana Paula project in Guerrero Mexico, the company said.

Under the terms of the offering 9.9 million units were offered at a price of 37 cents per unit, generating gross proceeds of $3.7 million, pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 Prospectus Exemptions (the brokered portion).

Also, 8.9 million units were offered directly by the company at the issue price pursuant to a concurrent non-brokered private placement for additional gross proceeds of $3.3 million (the non-brokered portion).

Each unit consists of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to buy one common share for 18 months at an exercise price of 50 cents for an initial period of six months, after which time the exercise price will rise to 70 cents for the remaining term of the warrant.

News that the offering has closed came after the close of trading on July 11, 2023, when Heliostar shares were priced at 36 cents. The shares trade in a 52-week range of 57 cents and 19.5 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. [AR-TSX], 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 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.

San Antonio is a high-grade oxide gold deposit containing a measured and indicated mineral resource of 1.73 million ounces of gold at 0.83 g/t. A preliminary economic assessment for Argonaut was completed in 2012.

Unga is an advanced vein district containing the SH-1 gold deposit within a large, prospective vein field. SH-1 contains an inferred resource of 384,000 ounces of gold at 13.8 g/t gold.

Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *