Business
Heliostar to Acquire Gold Portfolio of Producing Mines and Development Projects in Mexico for US$5M
HIGHLIGHTS : Strategic Acquisition of former Argonaut Gold Assets in Mexico - transfo...
About this update from Heliostar Metals Ltd
[{"type":"text","content":"\nHeliostar to Acquire Gold Portfolio of Producing Mines and Development Projects in Mexico for US$5M HIGHLIGHTS:Strategic Acquisition of former Argonaut Gold Assets in Mexico - transforms Heliostar into a gold producer with a robust development portfolioExpanded Asset Base - adds two producing mines, the San Agustin Mine and the La Colorada Mine, and two advanced development projects to Heliostar's portfolioIncreased Resource Base - Heliostar's measured and indicated resources grow to 3.5 million ounces of gold in addition to the Cerro del Gallo historical resource. Acquisition cost of measured and indicated resources is less than US$1.80 per ounce of goldImproves Ana Paula Economics - eliminates up to US$20 million in contingent milestone payments on the Company's flagship Ana Paula ProjectImmediate Production and Cash Flow - financial benefits from ongoing operations immediately accrue to Heliostar's account until closing, less US$5 million in operating cash flow to FCGI prior to closingVancouver, British Columbia--(Newsfile Corp. - July 17, 2024) - Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) (\"Heliostar\" or the \"Company\") has entered into a binding agreement (\"Acquisition Agreement\") with Florida Canyon Gold Inc. (\"FCGI\") to acquire (the \"Transaction\") a 100% interest in all of FCGI's mining assets in Mexico for consideration of US$5 million. The projects being acquired were recently spun out from Argonaut Gold Inc. (\"Argonaut\"). Heliostar CEO, Charles Funk, stated \"This acquisition is transformative for Heliostar. The Company transitions from single asset developer to a multi-asset producer. The addition of the two producing gold mines provides cash flow to bring new production online. In addition, this transaction eliminates up to US$20 million in contingent payments on the Ana Paula project, freeing that capital for its development, which remains the Company's focus. Further it cancels up to US$150 million in conditional option payments on San Antonio. All in exchange for a total acquisition price of US$5 million. Perhaps of most value is the addition of a strong management team in Mexico that expands our capability to deliver on Heliostar's growth goals\"Acquisition DetailsPursuant to the Transaction, Heliostar will acquire those FCGI subsidiaries which collectively own 100% of the followin...