20 July 2023
Vancouver, British Columbia – July 20, 2023: Blue Star Gold Corp. (TSXV: BAU) (OTCQB: BAUFF) (FSE: 5WP0) (“Blue Star” or the “Company”) announces that, further to its news release of July 13, 2023 and subject to the final approval of the TSX Venture Exchange (the “Exchange”), the Company has closed its non-brokered private placement of $869,750 through the issuance of 700,000 flow-through units (each, a “FT Unit”) at $0.42 per FT Unit and 1,175,000 charitable flow-through units (the “Charitable FT Units”) at a price of $0.49 per Charitable FT Unit (together, the “Private Placement”).
Each FT Unit consists of one flow-through common share of the Company (a “FT Share”) and one-half of one transferable warrant (each whole warrant, a “Warrant”), with each whole Warrant exercisable at $0.50 per Share until July 20, 2025 (the “Expiry Date”).
Each Charitable FT Unit consists of one FT Share and one-half of one Warrant, with each whole Warrant exercisable at $0.50 per Share until the Expiry Date.
The FT Shares qualify as flow-through shares for purposes of the Income Tax Act (Canada). The Company will renounce said expenditures to the investors for the taxation year ending December 31, 2023.
All securities issued are subject to the Exchange Hold Period and a four-month and one day hold period pursuant to securities laws in Canada expiring on November 21, 2023. The Company intends to use the net proceeds from the Private Placement of FT Units and Charitable FT Units to incur Canadian exploration expenses (the “Qualifying Expenditures”) on its projects in Nunavut prior to December 31, 2023.
The Company paid finder’s fees in the amount of $34,912.50 cash and 77,250 non-transferable finder’s warrants (each a “Finder’s Warrant”) to GloRes Securities Inc. and $17,272.50 cash and 35,250 Finder’s Warrants to Teresa Schmid. Each Finder’s Warrant is exercisable at $0.50 per Share until the Expiry Date.