10 July 2020
Blue Star Gold Corp. is pleased to announce that it has closed its non-brokered private placement issuing a total of 4,100 units of the Company at a price of $1,000 per Unit raising total gross proceeds of $4,100,000. Each Unit is comprised of 20,000 unsecured convertible debenture and 20,000 non-transferable common share purchase warrants of the company.
Each Debenture has a maximum term of 3 years and will bear an annual simple interest rate of 7.5%. During the first year of the Term, the principal amount of each Debenture may be converted by the holder, for no additional consideration, into common shares of the Company at a conversion price of $0.05 per Share and $0.10 per Share during the second and third years of the Term.
Each Warrant entitles the holder to purchase one additional Share at an exercise price of $0.075 per Share until the expiry date of the Term.
The Company paid finders fees of $32,500 and 650,000 Shares at a deemed price of $0.05 per Share to Teresa Schmid.
The Company intends to use the proceeds from the Private Placement for the exploration and development of the Company's mineral projects and for general working capital.