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Heliostar Announces Initial Closing of $4.5 Million Offering with Lead Order from Eric Sprott
Vancouver, British Columbia--(Newsfile Corp. - June 21, 2024) - Heliostar Metals Ltd. (TSXV: HSTR...
About this update from Heliostar Metals Ltd
[{"type":"text","content":"Heliostar Announces Initial Closing of $4.5 Million Offering with Lead Order from Eric SprottVancouver, British Columbia--(Newsfile Corp. - June 21, 2024) - Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) (\"Heliostar\" or the \"Company\") is pleased to announce that it has closed the initial tranche of its non-brokered private placement offering (the \"Offering\") previously announced on June 5, 2024. Pursuant to the Offering, the Company issued an aggregate of 16,904,585 common shares (the \"Shares\") at a price of $0.265 per Share for gross proceeds of approximately $4,479,715.The Company expects to close a final tranche of the Offering upon receipt of TSX Venture Exchange approval for the creation of a new insider of the Company. Assuming such approval is obtained, the final tranche is expected to close on or around June 28, 2024, for gross proceeds of approximately $499,790.3,773,585 of the Shares were offered pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions and will not be subject a statutory hold period. 13,131,000 of the Shares were offered to purchasers pursuant to the accredited investor exemption under Section 2.3 of NI 45-106 and will be subject to a statutory hold period of four months and one day.Mr. Eric Sprott increased his ownership in the Company by participating in the Offering with a lead order through 2176432 Ontario Ltd., acquiring 7,550,000 Shares for gross proceeds of $2,000,750.The Company intends to use the net proceeds of the Offering for the commencement of drilling at Ana Paula and general working capital. Closing of the Offering is subject to final approval of the TSX Venture Exchange.The Company also paid finder's fees in connection with a portion of the financing, consisting of a cash fee of $200,000. In addition, the Company issued the finders 554,718 non-transferable finder's warrants (the \"Finder's Warrants\"). Each Finder's Warrant entitles the holder to purchase one Share at a price of $0.265 for a period of 12 months.The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the \"U.S. Securities Act\"), and may not be offered or sold to, or for the account or benefit of, persons in the \"United States\" or \"U.S. persons\" (as such terms are defined in Regulation S und...