Blue Star raises $3.14 million in first tranche of private placement

Blue Star Gold Corp. (TSXV: BAU) (OTCQB: BAUFF) (FSE: 5WP0) closed the first tranche of its non-brokered private placement, raising gross proceeds of $3,141,000.62, according to a company statement.

The financing included 8,395,834 units at $0.24 per unit and 4,330,771 flow-through shares at $0.26 per share. Each unit consists of one common share and one-half warrant, with whole warrants exercisable at $0.30 per share for two years.

The company will use proceeds from unit sales for general working capital. Flow-through share proceeds will fund Canadian exploration expenses related to projects in Nunavut, which must be incurred by December 31, 2027.

Dr. Georg Pollert, a director and controlling shareholder, purchased 8,333,334 units in the placement. This transaction is considered a related party transaction under securities regulations, though the company relied on exemptions from formal valuation and minority shareholder approval requirements.

Blue Star paid finder's fees totaling $73,160.02 in cash and issued 282,826 finder's warrants. All securities are subject to a four-month and one-day hold period under Canadian securities laws.

The Vancouver-based mineral exploration company focuses on properties in Nunavut's High Lake Greenstone Belt, controlling over 420 square kilometers of mineral properties. Its assets include the Ulu Gold Project and the Roma and Auma Projects.

The financing is subject to TSX Venture Exchange approval.

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