- Blue Star Gold has closed the first tranche of its non-brokered private placement
- Gross proceeds from the placement totalled $2,739,627
- Net proceeds will be allocated primarily to the exploration and development of the company’s projects in Nunavut
- Blue Star has mobilized its 2021 exploration program and plans to test numerous priority targets on its Ulu and Hood River properties
- Blue Star has completed a share consolidation, resulting in the company having approximately 29,603,172 shares issued and outstanding
- Blue Star Gold is a gold and silver company focused on exploration and development within Nunavut
- Blue Star Gold Corp. (BAU) is up 16.67 per cent, trading at C$0.70 per share at 11:30 am ET
Blue Star Gold (BAU) has closed the first tranche of its non-brokered private placement issuing 1,462,253 flow-through shares and 2,451,500 common shares.
Gross proceeds from the placement totalled $2,739,627.
The company paid finder’s fees of $46,500 to GloRes Securities and Red Cloud Financial Services Inc.
The shares will be subject to a four-month hold period.
Net proceeds will be allocated to the exploration and development of the company’s projects in Nunavut and for general working capital.
Ulu and Hood River exploration program
Blue Star has mobilized its 2021 exploration program and plans to test numerous priority targets on its Ulu and Hood River properties. Several of the targets are located within ~1,000 metres of the Flood Zone deposit, where a significant high-grade gold resource has been outlined.
Blue Star’s CEO, Grant Ewing, commented,
“The current financing and restructuring is anticipated to be complete within the next 30 days, and following this Blue Star will be in the best shape in the Company’s history. We will have an attractive capital structure, a clean balance sheet, and be fully funded for our 2021 exploration program where multiple priority targets will be tested over our highly prospective properties. The current exploration program will benefit from the extensive review and compilation of the historic Ulu dataset that was conducted over the last several months and will be the first program led by the Company’s new technical team that has a long history of success in Nunavut.”
Consolidation
Blue Star has completed a share consolidation. Shares were consolidated on the basis of one post-consolidation share for every ten pre-consolidation shares which will result in the company having approximately 29,603,172 shares issued and outstanding.
Shares will begin trading on a post-consolidation basis at the opening of trading on Friday, June 18, 2021. Registered shareholders will receive a letter of transmittal with instructions for exchanging their pre-consolidation shares. Shareholders who hold their shares through a broker or other intermediary will not need to complete a letter of transmittal.
Blue Star Gold is a gold and silver company focused on exploration and development within Nunavut, Canada.
Blue Star Gold Corp. (BAU) is up 16.67 per cent, trading at C$0.70 per share at 11:30 am ET.
