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Heliostar Metals Closes Bought Deal Equity Financing for Gross Proceeds of $19.5 Million
Vancouver, British Columbia--(Newsfile Corp. - March 28, 2025) - Heliostar Metals Ltd. (TSXV: HST...
About this update from Heliostar Metals Ltd
[{"type":"text","content":"Heliostar Metals Closes Bought Deal Equity Financing for Gross Proceeds of $19.5 MillionVancouver, British Columbia--(Newsfile Corp. - March 28, 2025) - Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) (\"Heliostar\" or the \"Company\") is pleased to announce that it has closed the bought deal equity financing previously announced by the Company on March 20, 2025, including the partial exercise of the underwriters' option, for aggregate gross proceeds of $19,500,000 (the \"Offering\"). The Offering was conducted by a syndicate of underwriters led by Cormark Securities Inc. and Velocity Trade Capital Ltd., and including Clarus Securities Inc., BMO Capital Markets, Roth Canada Inc. and Ventum Financial Corp. (collectively, the \"Underwriters\").Pursuant to the Offering, the Company issued 19,500,000 common shares (the \"Offered Shares\") at a price of $1.00 per Offered Share. Mr. Eric Sprott, through 2176423 Ontario Ltd. (\"2176423\"), a corporation beneficially owned by him, invested $5,000,000 by subscribing for 5,000,000 Offered Shares. The net proceeds of the Offering will be used for the development of the Company's projects in Mexico, including drilling at Ana Paula, and for general corporate purposes.In consideration for the services provided by the Underwriters in connection with the Offering, on closing the Company paid to the Underwriters a cash commission equal to 5.0% of the gross proceeds of the Offering.Of the Offered Shares, (a) 9,000,000 were sold pursuant to the \"listed issuer financing exemption\" under Part 5A of National Instrument 45-106 – Prospectus Exemptions and therefore are not subject to resale restrictions pursuant to applicable Canadian securities legislation, and (b) 10,500,000 were sold pursuant to other exemptions under applicable Canadian securities legislation and are subject to a hold period expiring on July 29, 2025.The Offering remains subject to the final acceptance of the TSX Venture Exchange (the \"TSX-V\").2176423 is an existing insider of the Company, and as such, its participation in the Offering is a related-party transaction as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company completed the Offering in reliance on exemptions available under MI 61-101 from the f...