Blue Star Gold Corp. (TSXV:BAU) (OTCQB:BAUFF) (FSE:5WPO), a gold company focused on exploration and development within Nunavut, Canada, has announced two non-brokered private placements. The company is looking to raise gross proceeds of up to $5 million from a combination of regular units and flow-through units.
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Blue Star Gold Corp. (TSXV:BAU) (OTCQB:BAUFF) (FSE:5WPO), a gold company focused on exploration and development within Nunavut, Canada, has announced two non-brokered private placements.
The company is looking to raise gross proceeds of up to $5 million from a combination of regular units and flow-through units.
The company plans to raise up to $2.5 million from the placement of up to 5,434,783 flow-through units priced at $0.46 per unit, with each unit consisting of one share and one-half a warrant, with the full warrant exercisable at $0.55 for 24 months.
The company also plans to raise up to $2.5 million from the placement of up to 6,250,000 regular units priced at $0.40 per unit, with each unit consisting of one share and one-half a warrant, with the full warrant exercisable at $0.50 per unit for 24 months.
The shares are trading at $0.38.
Net proceeds from the flow-through units will be used on the Nunavut projects with the funds from the regular units used for general and working capital purposes.
Blue Star, with more than 20,000 hectares of highly prospective and underexplored mineral properties located in Nunavut, is the largest title holder in the High Lake Belt.
The properties are approximately 525 km NNE of Yellowknife.
Blue Star’s flagship asset, the Ulu Gold Project, is comprised of the Ulu Mining Lease and the contiguous Hood River Property, together encompassing approximately 12,000 hectares.
Permanent infrastructure at the site includes a camp, a network of roads, an airstrip, and an underground decline into the Flood Zone gold deposit.
The Flood Zone contains the bulk of the Ulu gold resource and is open on-strike and at depth.
Overall resources of 2.535 million tonnes grading 7.02 g/t Au for 572,000 gold ounces in the Measured & Indicated category, and 1.283 million tonnes grading 7.34 g/t Au for 303,000 gold ounces in the Inferred category, have been estimated for the Ulu Gold Project.
The highly prospective Hood River property is contiguous to the Ulu lease to the north, east and south.
A large number of high-grade gold showings occur throughout the property which provide for excellent resource expansion potential at multiple targets.
The Roma project is located in the northern section of the High Lake Greenstone Belt.
These properties cover high grade gold showings discovered by previous explorers, notably by BHP Minerals from 1988 to 1994.
Multiple significant gold showings are present within a 6.5 km x 2.4 km area on the historic Roma claim block.
For more information, please visit the company’s website www.BlueStarGold.ca, contact Grant Ewing, P Geo., CEO, at 778-379-1433 or by email info@BlueStarGold.ca.
Investor Relations are handled by Raffi Elmajian, Corporate Communications Manager, who can also be reached at 778-379-1433 or by email at RElmajian@BlueStarGold.ca
