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Blue Star Gold Announces Option Grants, Debt Settlements, Issuance of Bonus Shares and Closing of Non-Brokered Private Placement
Vancouver, British Columbia--(Newsfile Corp. - December 17, 2020) - Blue Star Gold Corp. (TSX...
About this update from Blue Star Gold Corp.
[{"type":"text","content":"Blue Star Gold Announces Option Grants, Debt Settlements, Issuance of Bonus Shares and Closing of Non-Brokered Private PlacementVancouver, British Columbia--(Newsfile Corp. - December 17, 2020) - Blue Star Gold Corp. (TSXV: BAU) (FSE: 5WP) (the \"Company\") announces that it has granted incentive stock options to purchase a total of 10,600,000 common shares at an exercise price of $0.11 per common share for a period of 3 years to certain directors, officers and consultants in accordance with the provisions of its stock option plan.The Company announces that it will issue an aggregate of 4,000,000 bonus shares (the \"Bonus Shares\") at a deemed price of $0.05 per Bonus Share pursuant to loan agreements (the \"Loan Agreements\") entered into with certain parties for an aggregate principal amount of $1,000,000 (the \"Loans\"). The Loans bear an annual simple interest rate of 7.5%. The aggregate number of Bonus Shares equals 20% of the principal amount of the Loans.The Loan Agreements and issuance of Bonus Shares were previously approved by the TSX Venture Exchange (the \"Exchange\") on June 22, 2020.The Company also announces that, subject to the approval of the Exchange, it wishes to settle the Loans, as to $1,000,000 in principal amount plus $114,687.50 in interest owing on the Loans referred to above, by issuing a total of 20,324,444 common shares (the \"Shares\") of the Company at a deemed price of $0.055 per Share (the \"Debt Settlement\"). The parties have agreed to accept repayment of the principal amount of the Loans and the interest owing on the Loans in Shares in lieu of cash, as originally agreed to in the Loan Agreements. The Company will obtain Exchange approval on the Debt Settlement prior to issuing the Shares. The sale of stakes in the Company's projects announced previously (see news release dated July 29, 2019) have been cancelled as a result of this Debt Settlement. The Company currently holds a 100% interest in its Ulu and Hood River Properties.Additionally, the Company announces that, subject to the approval of the Exchange, it has closed its non-brokered private placement (the \"Private Placement\") raising gross proceeds of $1,760,800 through the issuance of 22,010,000 units (the \"Units\") at a price of $0.08 per Unit. The Private Placement was conditionally approved by the Exchange on November 30, 2020.Each...