Business
Redstar Gold Closes CDN$4,100,000 Financing and Welcomes Eric Sprott as Strategic Shareholder
(via Thenewswire.ca) September 13, 2016 / TheNewswire / Redstar Gold Corp. (TS...
About this update from Heliostar Metals Ltd
[{"type":"text","content":"Redstar Gold Closes CDN$4,100,000 Financing and Welcomes Eric Sprott as Strategic Shareholder(via Thenewswire.ca)\n\n \n\n\nSeptember 13, 2016 / TheNewswire / Redstar Gold Corp. (TSX.V: RGC, US: RGCTF, FRA: RGG) (\"Redstar\" or the \"Company\") is pleased to announce that, further to its news release dated August 22, 2016, the Company has closed its non-brokered private placement of 41,000,000 shares (\"Shares\") at a price of CDN$0.10 per share to raise gross proceeds of CDN$4,100,000 (the \"Financing\").\n\n\n\nThe Company appreciates the positive response from the markets and strong investor interest in the Financing, which was oversubscribed, but in order to minimize any additional dilution, the Financing was capped at 41,000,000 Shares, as previously announced.\n\n\n\nEric Sprott acquired 9.6 million Shares pursuant to the Financing and together with other purchases of Shares, Mr. Sprott now holds approximately 11.6% of the issued and outstanding common shares of the Company on a non-diluted basis. The above percentages are calculated based on 259,763,296 common shares issued and outstanding after giving effect to the Financing. Prior to the Financing, Mr. Sprott owned 20.4 million Shares of the Company representing approximately 9.3% of the issued and outstanding common shares of the Company on a non-diluted basis.\n\n\n\n\"I would like to welcome Mr. Sprott as one of Redstar's largest shareholders and newest strategic investor. The Company can now make plans to initiate drilling up at our 100% controlled Unga Gold Project in Alaska,\" commented Peter A. Ball, President & CEO of Redstar Gold. \n\n\n\nThe proceeds from the Financing will be used to continue to progress the Unga Gold Project with additional drilling, continuing and expanding exploration across other known gold zones, complete a NI 43-101 Technical Report, and for general corporate purposes.\n\n\n\nThe Company paid finders' fees totalling CDN$48,000 and 480,000 broker warrants. Each whole warrant can be exercised into one common share of Redstar at a price of CDN$0.20 per share for a period of 2 years from closing. The private placement is subject to the approval of the TSX Venture Exchange and the securities will be subject to a four month and one day hold period under securities laws.\n\n\n\nMr. Sprott is acquiring the shares for investment purposes. Mr...