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Blue Star Gold Announces Closing of First Tranche of Non-Brokered Private Placement and Completion of Share Consolidation
Vancouver, British Columbia--(Newsfile Corp. - June 18, 2021) - Blue Star Gold Corp. (TSXV: B...
About this update from Blue Star Gold Corp.
[{"type":"text","content":"Blue Star Gold Announces Closing of First Tranche of Non-Brokered Private Placement and Completion of Share ConsolidationVancouver, British Columbia--(Newsfile Corp. - June 18, 2021) - Blue Star Gold Corp. (TSXV: BAU) (FSE: 5WP) (\"Blue Star\" or the \"Company\") announces that, further to its news release of June 1, 2021 and subject to the final approval of the TSX Venture Exchange (the \"Exchange\"), it has closed the first tranche of its non-brokered private placement (the \"Private Placement\") issuing 1,462,253 flow-through shares (each a \"FT Share\") and 2,451,500 common shares (each a \"Share\") at a price of $0.70 per FT Share and Share raising total gross proceeds of $2,739,627. The Company paid finder's fees of $46,500 to GloRes Securities and Red Cloud Financial Services Inc. The Shares and FT Shares will be subject to a four-month hold period pursuant to securities laws in Canada and, where applicable, the Exchange. The FT Shares and Shares were issued on a post-consolidated basis. The Company intends to use the net proceeds from the Private Placement for exploration and development of the Company's projects in Nunavut and for general working capital.Ulu and Hood River Exploration Program Blue Star has now mobilized its 2021 exploration program and plans to test numerous priority targets on its Ulu and Hood River properties. Several of the targets are located within ~1,000 metres of the Flood Zone deposit, where a significant high-grade gold resource has been outlined. Blue Star's CEO, Grant Ewing, commented, \"The current financing and restructuring is anticipated to be complete within the next 30 days, and following this Blue Star will be in the best shape in the Company's history. We will have an attractive capital structure, a clean balance sheet, and be fully funded for our 2021 exploration program where multiple priority targets will be tested over our highly prospective properties. The current exploration program will benefit from the extensive review and compilation of the historic Ulu dataset that was conducted over the last several months and will be the first program led by the Company's new technical team that has a long history of success in Nunavut.\"ConsolidationThe Company also announces that it has completed a share consolidation (the \"Consolidation\") on the basis of one (1) new Share for every te...