en.Wedoany.com Reported - Blue Star Gold Corp. (TSX Venture Exchange: BAU, OTCQB: BAUFF, Frankfurt Stock Exchange: 5WP0) has completed the first tranche of a non-brokered private placement, issuing 8,395,834 Units and 4,330,771 Flow-Through Shares (FT Shares) for aggregate gross proceeds of C$3,141,000.62.
Each Unit is priced at C$0.24 and consists of one common share of the Company and one-half of one common share purchase warrant. Each full warrant is exercisable at C$0.30 to acquire one additional common share in the capital of the Company for a period of two years from the date of closing of the private placement. Each FT Share is issued at a price of C$0.26 and qualifies as a "flow-through share" within the meaning of subsection 66(15) of the Income Tax Act (Canada).
The proceeds from the Unit private placement will be used for general working capital, while the proceeds from the FT Share private placement will be used to incur eligible "Canadian exploration expenses" (i.e., "flow-through mining expenditures") related to the Company's projects in Nunavut. The Company will incur these expenses on or before December 31, 2027, and will renounce the qualifying expenditures with an effective date no later than December 31, 2027, in an amount not less than the gross proceeds from the issuance of the FT Shares.
All issued securities are subject to a hold period of four months and one day under Canadian securities laws and exchange regulations. In connection with the Unit private placement, the Company paid C$600 in cash and issued 3,750 finder warrants, and in connection with the FT Share private placement, paid C$72,560.02 in cash and issued 279,076 finder warrants. Each finder warrant is non-transferable, exercisable at C$0.30 for a period of two years.
Dr. Georg Pollert, a director and controlling shareholder of the Company, purchased 8,333,334 Units under the Unit private placement, constituting a related party transaction. The Company is exempt from the formal valuation and minority shareholder approval requirements under sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101.
Blue Star Gold Corp. is a Canadian mineral exploration and development company focused on the Nunavut region. The Company controls over 420 square kilometers of mineral claims within the High Lake Greenstone Belt, with key assets including the Ulu Gold Project (comprising the Ulu Mining Lease and the Hood River Property) as well as the Roma and Auma projects. The Ulu Mining Lease hosts the high-grade Flood Zone gold deposit, and the Company's broader land package contains numerous gold and critical mineral targets. The projects are located 40 to 100 kilometers south of the proposed Grays Bay deep-water port, a port and all-weather road corridor project recently submitted by Canadian Prime Minister Carney to the Major Projects Office, which is specifically responsible for accelerating infrastructure projects of national importance.
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