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Blue Star Gold has issued the second tranche of 98,451 common shares at $0.45 per share as part of a loan renewal agreement with director Dr. Georg Pollert. The agreement relates to a $2.54 million loan ($2.44M principal plus $102K accrued interest) with a three-year term at 3% annual interest. A total of 295,354 shares will be issued as a loan bonus in three tranches, with the first tranche issued on October 25, 2023, and the final tranche due by October 25, 2025. The shares are subject to a four-month hold period, and the transaction qualifies for exemptions from formal valuation and minority shareholder approval requirements.
Blue Star Gold ha emesso la seconda tranche di 98.451 azioni ordinarie a $0,45 per azione nell’ambito di un accordo di rinnovo del prestito con il direttore Dr. Georg Pollert. L’accordo riguarda un prestito di $2,54 milioni ($2,44M di capitale più $102K di interessi maturati) con un termine di tre anni a un tasso d’interesse annuale del 3%. Un totale di 295.354 azioni sarà emesso come bonus per il prestito in tre tranche, con la prima tranche emessa il 25 ottobre 2023, e l’ultima tranche in scadenza entro il 25 ottobre 2025. Le azioni sono soggette a un periodo di blocco di quattro mesi e la transazione beneficia di esenzioni dai requisiti di valutazione formale e approvazione degli azionisti di minoranza.
Blue Star Gold ha emitido la segunda tranche de 98,451 acciones comunes a $0.45 por acción como parte de un acuerdo de renovación de préstamo con el director Dr. Georg Pollert. El acuerdo se relaciona con un préstamo de $2.54 millones ($2.44M de capital más $102K de intereses acumulados) con un plazo de tres años a una tasa de interés anual del 3%. Se emitirán un total de 295,354 acciones como bono de préstamo en tres tranches, siendo la primera emitida el 25 de octubre de 2023, y la última tranche vence el 25 de octubre de 2025. Las acciones están sujetas a un período de retención de cuatro meses y la transacción califica para exenciones de los requisitos de valoración formal y aprobación de accionistas minoritarios.
블루 스타 골드는 George Pollert 박사와의 대출 갱신 계약의 일환으로 주당 $0.45로 98,451주에 대한 두 번째 분할을 발행했습니다. 이 계약은 $2.54 백만 대출 ($2.44M 원금 + $102K 발생이자)과 관련이 있으며, 3%의 연이율로 3년의 기간을 가지고 있습니다. 총 295,354주의 주식이 3회에 걸쳐 대출 보너스로 발행될 예정이며, 첫 번째 분할은 2023년 10월 25일에 발행되고 마지막 분할은 2025년 10월 25일까지 만기됩니다. 해당 주식은 4개월의 보유 기간이 적용되며, 거래는 공식 평가 및 소액 주주 승인 요건의 면제를 받습니다.
Blue Star Gold a émis la deuxième tranche de 98 451 actions ordinaires à 0,45 $ par action dans le cadre d’un accord de renouvellement de prêt avec le directeur Dr. Georg Pollert. L’accord concerne un prêt de 2,54 millions de dollars (2,44 millions de dollars de capital plus 102 000 dollars d’intérêts cumulés) ayant une durée de trois ans à un taux d’intérêt annuel de 3 %. Au total, 295 354 actions seront émises en tant que bonus de prêt en trois tranches, la première tranche étant émise le 25 octobre 2023 et la tranche finale devant être réglée d’ici le 25 octobre 2025. Les actions sont soumises à une période de blocage de quatre mois, et la transaction bénéficie d’exemptions concernant les exigences d’évaluation formelle et d’approbation des actionnaires minoritaires.
Blue Star Gold hat die zweite Tranche von 98.451 Stammaktien zu $0,45 pro Aktie im Rahmen einer Kreditverlängerungsvereinbarung mit Direktor Dr. Georg Pollert ausgegeben. Die Vereinbarung bezieht sich auf ein Kredit von $2,54 Millionen ($2,44M Hauptsumme plus $102K aufgelaufene Zinsen) mit einer Laufzeit von drei Jahren zu einem jährlichen Zinssatz von 3%. Insgesamt werden 295.354 Aktien als Darlehensbonus in drei Tranchen ausgegeben, wobei die erste Tranche am 25. Oktober 2023 ausgegeben wird und die letzte Tranche bis zum 25. Oktober 2025 fällig ist. Die Aktien unterliegen einer viermonatigen Haltefrist, und die Transaktion ist von den Anforderungen einer formalen Bewertung und der Genehmigung durch Minderheitsaktionäre befreit.
Positive
- Secured $2.54 million in financing through loan agreement
- Favorable 3% annual interest rate on the loan
- Extended loan term of three years providing financial flexibility
Negative
- Share dilution through issuance of 295,354 bonus shares
- Related party transaction with controlling shareholder
Vancouver, British Columbia–(Newsfile Corp. – October 25, 2024) – Blue Star Gold Corp. (TSXV: BAU) (OTCQB: BAUFF) (FSE: 5WP0) (“Blue Star” or the “Company”) announces that, further to its news release of October 25, 2023, it has issued 98,451 common shares (the “Shares“) at a deemed price of $0.45 per Share which represents the second tranche of Shares owing pursuant to a renewal agreement (the “Agreement“) entered into with Dr. Georg Pollert, a director of the Company and a controlling shareholder, in relation with a loan in the principal amount of $2,537,434 (the “Loan“), being $2,435,542 as original principal and $101,892.40 as accrued interest. The Loan has a term of three years and bears interest at 3% per annum.
Pursuant to the Agreement, the Company agreed to issue an aggregate of 295,354 Shares of the Company to Dr. Pollert as a loan bonus payable in three tranches. The First 98,451 Shares were issued on October 25, 2023 and the remaining 98,452 Shares are due to be issued by October 25, 2025.
The Shares are subject to a four-month and one day hold period pursuant to securities laws in Canada and the Exchange Hold Period.
The issuance of the Shares pursuant to the Loan is considered a related party transaction (as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101“)). The Company relied on certain exemptions from the requirement to obtain a formal valuation and minority shareholder approval, namely sections 5.5(a) and 5.7(a) of MI 61-101, as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the issuance of Shares exceeds 25% of the Company’s market capitalization.
About Blue Star Gold Corp.
Blue Star is a mineral exploration and development company focused in Nunavut, Canada. Blue Star’s landholdings total 270 square kilometres of highly prospective and underexplored mineral properties in the High Lake Greenstone Belt. The Company owns the Ulu Gold Project, comprised of the Ulu Mining Lease and Hood River Property, and the Roma Project. A significant high-grade gold resource exists at the Flood Zone deposit (Ulu Mining Lease), and numerous high-potential exploration targets (gold and critical minerals) occur throughout the Company’s extensive landholdings, providing Blue Star with excellent resource growth potential. The site of the future deep-water port at Grays Bay is 40 – 100 km to the north of the properties, and the proposed route corridor for the all-weather Grays Bay Road passes close by the Roma and Ulu Gold Projects.
Blue Star is listed on the TSX Venture Exchange under the symbol: BAU, the U.S. OTCQB Venture Market under the symbol: BAUFF, and on the Frankfurt Exchange under the symbol: 5WP0. For information on the Company and its projects, please visit our website: www.bluestargold.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the TSX-Venture Exchange) accepts responsibility for the adequacy or accuracy of this Release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION
This press release contains “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding prospective income and revenues, anticipated levels of capital expenditures for the fiscal year, expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities, and governmental and regulatory investigations and proceedings, and estimates of mineral resources and reserves on our properties.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses into our operations, developments and changes in laws and regulations, including increased regulation of the mining industry through legislative action and revised rules and standards applied by the regulatory bodies in Nunavut, changes in the price of fuel and other key materials and disruptions in supply chains for these materials, closures or slowdowns and changes in labour costs and labour difficulties, including stoppages affecting either our operations or our suppliers’ abilities to deliver goods and services to us, as well as natural events such as severe weather, fires, floods and earthquakes or man-made or other disruptions of our equipment, and inaccuracies in estimates of mineral resources and/or reserves on our mineral properties.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.
This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227779
FAQ
How many shares did Blue Star Gold (BAUFF) issue in the second tranche of the loan agreement?
Blue Star Gold issued 98,451 common shares at a deemed price of $0.45 per share in the second tranche.
What is the total value and terms of Blue Star Gold’s (BAUFF) loan agreement with Dr. Georg Pollert?
The loan agreement is for $2,537,434 ($2,435,542 principal plus $101,892.40 accrued interest), with a three-year term and 3% annual interest rate.
How many total bonus shares will Blue Star Gold (BAUFF) issue under the loan agreement?
Blue Star Gold will issue a total of 295,354 shares as a loan bonus, distributed in three tranches.
