(TheNewswire)
Vancouver, Canada - TheNewswire - November 25, 2020 - HeliostarMetals Limited (TSXV:HSTR ) (OTC :RGCTF ) ( FRA:RGG)( "Heliostar" or the "Company" )is pleased to announce it has entered into an agreement with TrilliumGold Mines Inc. (TSXV:TGM) ( "Trillium" ) to sell its 16.5%interest in the Newman Todd property located in the Red Lake districtof Ontario.
Heliostar's CEO, Charles Funk, commented "Converting Heliostar's non-coreminority interest in Newman Todd into cash and Trillium shares isconsistent with our strategy to focus on our Unga project and ourMexican exploration portfolio. The additional funds further strengthenour cash balance as we complete the 2020 Unga drill program, while ourshareholding in Trillium and the potential for a success paymentretains exposure to the upside of the Newman Toddproperty."
Newman Todd sale
Heliostar and Trillium have worked together recently toconfirm their respective ownership percentages in the Newman Toddproperty joint venture. Heliostar received an offer for its 16.5%ownership stake from a third party in September and Trillium, whichheld a right of first refusal pursuant to the terms of the parties'joint venture agreement, has decided to exercise that right of firstrefusal. The parties have agreed that Heliostar will sell its 16.5%interest to Trillium on the following commercial terms;
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- Trillium shall pay Heliostar a C$700,000 cash paymentupon closing,
- Trillium will issue to Heliostar 650,000 Trilliumcommon shares from treasury (using the closing price for Trilliumshares on the TSX Venture Exchange for November 24, 2020, these shareshave a market value of C$1,001,000). Shares will be subject to a fourmonth hold period, and
- If at any point after the transaction completes thereis 1,000,000 or more ounces of gold in measured and indicated reservesand resources on the Newman Todd property, Trillium shall make anadditional C$1,000,000 cash payment to Heliostar.
The transaction is subject to approval by the TSXVenture Stock Exchange.
About Heliostar Metals Ltd.
Heliostar is a well-financed junior exploration anddevelopment company with a portfolio of high-grade gold projects inAlaska and Mexico. The company's flagship asset is the 100%controlled Unga Gold Project on Unga and Popof Islands in Alaska. Theproject hosts an intermediate sulphidation epithermal gold depositwithin the district-scale property that encompasses 240km 2 across the twoislands. Additional targets on the property include intermediatesulphidation epithermal veins, and porphyry and high sulphidationtargets. On Unga Island, priority targets include: SH-1 and Aquila,both on the Shumagin Trend, the former Apollo-Sitka mine, which wasAlaska's first underground gold mine, and the Zachary Bay porphyrygold-copper prospect. Gold mineralization at the Centennial Zone islocated on neighbouring Popof Island within four kilometres ofinfrastructure and services at Sand Point.
In Mexico, the company owns 100% of three early stageepithermal projects in Sonora that are highly prospective for gold andsilver. Cumaro forms part of the El Picacho district, while the OsoNegro and La Lola projects are large, properties with multipleoutcropping veins that have never been drilled.
Amended and Restated SH-1 TechnicalReport
The Company is also pleased to announce that it hasfiled an amended and restated technical report titled Amended andRestated NI 43-101 Technical Report & Resource Estimate for theSH-1 Gold and Silver Deposit, Part of the Unga Project, SouthwestAlaska, U.S.A., dated November 24, 2020. The Effective Date of thereport is September 25, 2020 but the Resource Effective Date isFebruary 10, 2020. The report was prepared and executed by William T.Ellis. The amended and restated report includes additional disclosureof other prospects on Unga Island, as the original report dated assumed that the SH-1 Deposit would be developed as a standaloneproject, but there are no material differences between the resourceidentified in the original report and the resource identified in theamended and restated technical report. The amended and restatedtechnical report was prepared in accordance with the CanadianSecurities Administrators National Instrument 43-101 - Standards of Mineral Disclosure for Mineral Projects("NI 43-101"). A copy of the amended and restated technicalreport is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website atwww.heliostarmetals.com
For additional information pleasecontact:
Charles Funk
Chief Executive Officer
Heliostar Metals Limited?
Email: info@heliostarmetals.com
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
Forward-Looking Information. Thisrelease includes certain statements that may be deemed"forward-looking statements". Forward-looking statementsare statements that are not historical facts and are generally, butnot always, identified by the words "expects","plans", "anticipates", "believes","intends", "estimates", "projects","potential" and similar expressions, or that events orconditions "would", "may", "could" or"should" occur. Forward-looking statements in this pressrelease include Heliostar's expectations that the transactionscontemplated in the Agreement will be approved by the TSX VentureExchange and completed. Although the Company believes theexpectations expressed in such forward-looking statements are based onreasonable assumptions, such statements are not guaranteeing of futureperformance and actual results may differ materially from those in theforward-looking statements. Factors that could cause the actualresults to differ materially from those in forward-looking statementsinclude market prices, exploitation and exploration successes, andcontinued availability of capital and financing, and general economic,market or business conditions. Investors are cautioned that any suchstatements are not guarantees of future performance and actual resultsor developments may differ materially from those projected in theforward-looking statements. Forward-looking statements are based onthe beliefs, estimates and opinions of the Company's management on thedate the statements are made. Except as required by applicablesecurities laws, the Company undertakes no obligation to update theseforward-looking statements in the event that management's beliefs,estimates or opinions, or other factors, should change.
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