Heliostar Metals (HSTR.V) recently announced a C$12M bought deal financing but almost immediately upsized it to C$17M (subject to the traditional over-allotment option). The financing is priced at C$1.00 per common share, and no warrants will be issued as part of this financing.
Taking the money is the safest thing to do as the C$17M (and likely closer to C$19.5M upon the exercise of the over-allotment option) will put the company in a much more comfortable position. And as there is no warrant involved, it makes a lot of sense to take the money and use it to advance the projects.
A portion of the funds will now be used to continue drilling the Ana Paula gold project in Mexico’s Guerrero state while the company also aims to bring the restart of the San Agustin mine forward. The company now expects to receive all required permits by the middle of this year, which would put Heliostar on track to restart the mine by the end of this year.
Disclosure: The author has a small long position in Heliostar Metals. Heliostar is a sponsor of the website. Please read the disclaimer.
