Blue Star Gold raises $1.7 million in private placement financing

Blue Star Gold Corp. (TSXV: BAU) (OTCQB: BAUFF) (FSE: 5WP0) raised gross proceeds of $1,739,999.90 through a non-brokered private placement, according to a company statement.

The financing consisted of 1,600,000 flow-through units priced at $0.15 each and 10,714,285 units at $0.14 per unit. Each flow-through unit includes one common share qualifying as a flow-through share and one-half warrant. Each regular unit contains one common share and one-half warrant.

The warrants are exercisable at $0.20 per share until August 12, 2026. All securities are subject to a four-month hold period expiring December 13, 2025.

Blue Star will use proceeds from the flow-through units to incur Canadian exploration expenses qualifying as flow-through mining expenditures related to its Nunavut projects. The company must renounce these expenditures with an effective date no later than December 31, 2025. Proceeds from regular units will support general working capital.

The company paid finder's fees of $14,400 cash and 96,000 finder's warrants exercisable at $0.15 per share until August 12, 2027.

Dr. Georg Pollert, a director and controlling shareholder, purchased all 10,714,285 units in the placement. This constitutes a related party transaction under securities regulations, though the company relied on exemptions from formal valuation and minority shareholder approval requirements.

Blue Star operates mineral exploration and development projects in Nunavut, Canada, including the Ulu Gold Project and Roma Project across 300 square kilometers in the High Lake Greenstone Belt.

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