Heliostar Metals Ltd Stock Price, News & Analysis

Heliostar Metals has received clearance from COFECE (Comisión Federal de Competencia Económica) for its planned acquisition of the Mexico Business Unit from Florida Canyon Gold. This regulatory approval was the final major requirement needed before closing the acquisition, which is expected to take place in early November 2024. The company trades under the symbols HSTR on TSXV, HSTXF on OTCQX, and RGG1 on FSE.

Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) has appointed Hernan Dorado as Vice President Sustainability and Special Projects. Dorado brings over 20 years of mining industry experience, most recently as a founding member of Guanajuato Silver, where he held roles including Chief Operating Officer and Chief Sustainability Officer.

Dorado's background includes a Mining Engineering degree, an Executive MBA, and qualification as a mining expert with the Mining and Metallurgical Society of America. CEO Charles Funk highlighted Dorado's proven track record and his role in overseeing permitting, community, and environmental management, as well as advising on the Cerro del Gallo project strategy.

Additionally, Heliostar reported that 3,984,324 warrants have been exercised since September 16th, 2024, contributing $1,195,297 to the company's treasury.

Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) has appointed Mr. Mike Gingles as Vice President Corporate Development. Mr. Gingles brings over 35 years of experience in the mining industry, having led corporate transactions for Pueblo Viejo and Turquoise Ridge, resulting in the development of over 30 million ounces of gold reserves.

Mr. Gingles has worked for major mining companies, including 11 years with Placer Dome (now Barrick Gold). He is a Qualified Professional (QP) member of the Metallurgical & Mining Society of America with expertise in Mineral Valuation Finance. Mr. Gingles holds an MBA from Imperial College Business School, London.

Heliostar CEO, Charles Funk, stated that Mr. Gingles will transition to a full-time role to help the company build towards its initial target of 150,000 ounces of profitable annual gold production.

Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) has commenced a 5,000-metre diamond drill program at its Ana Paula Project in Mexico. The program aims to expand the resource ahead of a planned Feasibility Study in late 2025. The two-phase drilling will test extensions of the High Grade Panel and Parallel Panel targets. Phase one includes seven drill holes totaling 2,600 metres, while phase two consists of eight drill holes totaling 2,400 metres.

The company has also granted 4,675,000 stock options at an exercise price of $0.42 and 1,180,000 restricted share units to directors, officers, employees, and consultants. Additionally, Heliostar has entered into advisory agreements with TSCG Capital Group and 3L Capital Inc., which will receive warrants upon TSX-V approval.

Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) has arranged two debt facilities totaling up to US$10 million to support its acquisition of Mexican assets from former Argonaut Gold. The facilities include:

1. A US$5 million working capital facility with Ocean Partners, available immediately at 3-month SOFR + 4% interest, maturing on December 31, 2025.

2. A US$5 million transaction closing facility with Deans Knight at 15% interest, maturing on November 30, 2026.

These facilities will enable Heliostar to close the acquisition with less than 1% equity dilution. The company plans to repay principal and interest from operating cash flow. Following the acquisition, expected to close in November 2024, Heliostar aims to become a producing gold company with immediate cash flow and plans to grow production to 150,000 oz per year over the next 3 years.

Heliostar Metals (TSXV: HSTR, OTCQX: HSTXF, FSE: RGG1) announced a US$5M acquisition of gold-producing mines and development projects in Mexico from Florida Canyon Gold. This strategic move transitions Heliostar into a multi-asset producer, adding the San Agustin and La Colorada mines, and Cerro del Gallo and San Antonio projects to its portfolio.

The acquisition increases measured and indicated resources to 3.5 million ounces of gold, significantly enhancing Heliostar's asset base at a cost of less than US$1.80 per ounce. Immediate financial benefits include cash flow from ongoing operations and eliminating up to US$20M in contingent milestone payments on the Ana Paula project, and up to US$150M in conditional option payments on San Antonio. Heliostar aims to fund the transaction through a US$5-10M debt facility. The deal is expected to close in October 2024, subject to regulatory approvals.

Heliostar Metals has announced a US$20M debt facility to advance the Ana Paula Project through completion of the underground decline, test mining, and processing a bulk sample. This self-funded innovative approach aims to reduce equity dilution and is expected to be repaid within 30 months through the sale of gold. The facility also includes provisions for additional drilling to expand the resource, reducing future capital expenditure and drilling costs.