Heliostar Metals (HSTR.V) is taking advantage of the Listed Issuer Financing Exemption to try to raise up to C$5M in a financing priced at C$0.37 per unit. This means a total of 13.5 million units will be marketed with each unit consisting of one common share as well as half a warrant which will expire in just 18 months. The warrants aren’t too dilutive: the warrant holder can exercise the warrants at C$0.50 within the first six months after the closing date where after the exercise price increases to C$0.70.
Heliostar has engaged Clarus Securities as lead agent and sole bookrunner on behalf of a syndicate including PI Financial and Roth Canada. The offering will close around July 11th. The proceeds will obviously be used to continue the activities a the flagship Ana Paula gold project in Mexico’s Guerrero state. The company is investigating the possibility to re-think the project as an underground mine.
Disclosure: The author has no position in Heliostar Metals. Heliostar is a sponsor of the website. Please read our disclaimer.
