Heliostar Arranges Debt Facilities up to US$10M to Support Acquisition of Production Assets
Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) has arranged two debt facilities totaling up to US$10 million to support its acquisition of Mexican assets from former Argonaut Gold. The facilities include:
1. A US$5 million working capital facility with Ocean Partners, available immediately at 3-month SOFR + 4% interest, maturing on December 31, 2025.
2. A US$5 million transaction closing facility with Deans Knight at 15% interest, maturing on November 30, 2026.
These facilities will enable Heliostar to close the acquisition with less than 1% equity dilution. The company plans to repay principal and interest from operating cash flow. Following the acquisition, expected to close in November 2024, Heliostar aims to become a producing gold company with immediate cash flow and plans to grow production to 150,000 oz per year over the next 3 years.
Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) ha organizzato due finanziamenti per un totale di 10 milioni di dollari USA per supportare l'acquisizione di beni messicani da parte dell'ex Argonaut Gold. I finanziamenti includono:
1. Un finanziamento per capitale circolante di 5 milioni di dollari USA con Ocean Partners, disponibile immediatamente con un interesse del SOFR a 3 mesi + 4%, con scadenza il 31 dicembre 2025.
2. Un finanziamento per la chiusura della transazione di 5 milioni di dollari USA con Deans Knight con un interesse del 15%, con scadenza il 30 novembre 2026.
Questi finanziamenti consentiranno a Heliostar di chiudere l'acquisizione con meno dell'1% di diluizione da capitale. L'azienda prevede di rimborsare il capitale e gli interessi con il flusso di cassa operativo. Dopo l'acquisizione, prevista per novembre 2024, Heliostar mira a diventare una società produttrice di oro con flussi di cassa immediati e pianifica di aumentare la produzione a 150.000 once all'anno nei prossimi 3 anni.
Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) ha organizado dos facilidades de deuda por un total de 10 millones de dólares USA para apoyar la adquisición de activos mexicanos de la antigua Argonaut Gold. Las facilidades incluyen:
1. Una facilidad de capital de trabajo de 5 millones de dólares USA con Ocean Partners, disponible de inmediato con un interés de SOFR a 3 meses + 4%, con vencimiento el 31 de diciembre de 2025.
2. Una facilidad de cierre de transacciones de 5 millones de dólares USA con Deans Knight a un interés del 15%, con vencimiento el 30 de noviembre de 2026.
Estas facilidades permitirán a Heliostar cerrar la adquisición con menos del 1% de dilución de capital. La empresa planea pagar el capital y los intereses con flujo de caja operativo. Tras la adquisición, que se espera cerrar en noviembre de 2024, Heliostar tiene como objetivo convertirse en una empresa productora de oro con flujo de caja inmediato y planea aumentar la producción a 150,000 onzas por año en los próximos 3 años.
Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF)는 이전 Argonaut Gold로부터의 멕시코 자산 인수를 지원하기 위해 총 1천만 달러 미국의 두 개의 부채 시설을 마련했습니다. 이 시설에는 다음이 포함됩니다:
1. Ocean Partners와 함께하는 500만 달러 미국의 운전 자본 시설, 3개월 SOFR + 4% 이자로 즉시 이용 가능하며, 만기는 2025년 12월 31일입니다.
2. Deans Knight와 함께하는 500만 달러 미국의 거래 체결 시설, 15% 이자로, 만기는 2026년 11월 30일입니다.
이 시설들은 Heliostar가 1% 미만의 지분 희석으로 인수를 마무리할 수 있게 할 것입니다. 회사는 운영 현금 흐름으로 원금과 이자를 상환할 계획입니다. 2024년 11월에 인수가 마무리될 것으로 예상되며, Heliostar는 즉각적인 현금 흐름을 가진 금 생산 회사가 되는 것을 목표로 하며, 향후 3년 동안 연간 150,000 온스로 생산을 늘릴 계획입니다.
Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) a mis en place deux facilités de dette totalisant jusqu'à 10 millions de dollars US pour soutenir son acquisition d'actifs mexicains auprès de l'ancienne Argonaut Gold. Les facilités comprennent :
1. Une facilité de fonds de roulement de 5 millions de dollars US avec Ocean Partners, disponible immédiatement à un taux d'intérêt de 3 mois SOFR + 4%, arrivant à échéance le 31 décembre 2025.
2. Une facilité de conclusion de transaction de 5 millions de dollars US avec Deans Knight à un taux d'intérêt de 15%, arrivant à échéance le 30 novembre 2026.
Ces facilités permettront à Heliostar de finaliser l'acquisition avec moins de 1 % de dilution de capital. La société prévoit de rembourser le principal et les intérêts grâce à son flux de trésorerie d'exploitation. Suite à l'acquisition, prévue pour novembre 2024, Heliostar vise à devenir une entreprise productrice d'or avec un flux de trésorerie immédiat et prévoit d'augmenter la production à 150 000 onces par an au cours des 3 prochaines années.
Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) hat zwei Darlehensfazilitäten in Höhe von insgesamt 10 Millionen US-Dollar arrangiert, um die Übernahme von mexikanischen Vermögenswerten der ehemaligen Argonaut Gold zu unterstützen. Die Fazilitäten umfassen:
1. Eine 5 Millionen US-Dollar Betriebs- kapitalfazilität mit Ocean Partners, die sofort verfügbar ist zu 3-Monats-SOFR + 4% Zinsen, fällig am 31. Dezember 2025.
2. Eine 5 Millionen US-Dollar Transaktionsabschlussfazilität mit Deans Knight zu 15% Zinsen, fällig am 30. November 2026.
Diese Fazilitäten ermöglichen es Heliostar, die Übernahme mit weniger als 1% Eigenkapitalverdünnung abzuschließen. Das Unternehmen plant, Kapital und Zinsen aus dem operativen Cashflow zurückzuzahlen. Nach der Übernahme, die voraussichtlich im November 2024 abgeschlossen wird, plant Heliostar, ein produzierendes Goldunternehmen mit sofortigem Cashflow zu werden und die Produktion in den nächsten 3 Jahren auf 150.000 Unzen pro Jahr zu steigern.
- Secured US$10 million in debt facilities with favorable terms
- Acquisition financing achieved with less than 1% equity dilution
- Working capital facility interest rate of 9.4% (3-month SOFR + 4%)
- Expected to become a producing gold company with immediate cash flow post-acquisition
- Plans to grow production to 150,000 oz per year over next 3 years
- Transaction closing facility bears high interest rate of 15%
- Issuance of 1,500,000 common shares for loan establishment
HIGHLIGHTS:
- Up to US
$5 million working capital facility with Ocean Partners- Immediately available
- Interest rate 3 month SOFR +
4% (currently9.4% ) - Matures on December 31, 2025
- Up to US
$5M transaction closing facility with Deans Knight- Available to fund US
$5M closing payment to acquire a Mexican asset portfolio from the former Argonaut Gold - Interest rate
15% - Mature on November 30, 2026
- Available to fund US
- Provides capital required to close the acquisition with less than
1% equity dilution - Principal and interest amounts to be repaid from operating cash flow
Vancouver, British Columbia--(Newsfile Corp. - September 10, 2024) - Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") is pleased to report it has arranged two debt facilities for aggregate gross proceeds of up to US
Heliostar CEO, Charles Funk, commented, "This financing is a significant advancement for Heliostar and our shareholders. These facilities demonstrate the power of production as we were able to secure debt financing at significantly more favourable rates than previously contemplated in the gold-linked letter of intent for Ana Paula. We are now in the enviable position of having all the capital required to close the acquisition of Mexican assets from the former Argonaut Gold and accelerate the development of our assets for less than one percent equity dilution. Following the closing of the acquisition, which remains on track for November 2024, Heliostar will become a producing gold company with immediate cash flow, a healthy working capital balance and a strong position to grow our production base to 150,000 oz per year over the next 3 years."
The Company announces that it will no longer proceed with the previously announced letter of intent for a US
Details of the Debt Facilities
The Company has entered into a purchase contract (the "Purchase Contract") with Ocean Partners USA, Inc. ("Ocean Partners") pursuant to which Ocean Partners has agreed to buy
From the date of the Purchase Contract until December 31, 2025, the Company has the right to request an advance payment (the "Advance Payment") of up to US
The Company intends to use the net proceeds from the Working Capital Facility for general working capital requirements and to fund the advancement of its development projects.
The Company has also signed note purchase agreements for up to US
The Company has no obligation to draw from the Transaction Closing Facility. The drawn portion of the Transaction Closing Facility bears interest at
The Company intends to use the net proceeds from the Transaction Closing Facility to fund the final closing payment in connection with the Acquisition.
Implementation of the Working Capital Facility and the Transaction Closing Facility is subject to regulatory approval.
The Company has agreed to issue 1,500,000 common shares for loan establishment.
Advisor
TSCG Capital acted as advisor to Heliostar for the Transaction Closing Facility.
About Heliostar Metals Ltd.
Heliostar aims to grow to become a mid-tier gold producer. The Company is focused on developing the
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Charles Funk
President and Chief Executive Officer
Heliostar Metals Limited
Email: charles.funk@heliostarmetals.com
Phone: +1 844-753-0045
Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Email: rob.grey@heliostarmetals.com
Phone: +1 844-753-0045
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things, the intended use of proceeds of the Working Capital Facility and the Transaction Closing Facility, closing of the Acquisition, exploration and development of the Company's projects and potential cash flow and production from the Company's projects.
Forward-Looking statements and forward-looking information relating to the terms and completion of the Facility, any future mineral production, liquidity, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the receipt of necessary approvals, price of metals; no escalation in the severity of public health crises or ongoing military conflicts; costs of exploration and development; the estimated costs of development of exploration projects; and the Company's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.
These statements reflect the Company's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or forward-looking information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: precious metals price volatility; risks associated with the conduct of the Company's mining activities in foreign jurisdictions; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; risks regarding exploration and mining activities; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of public health crises; the economic and financial implications of public health crises, ongoing military conflicts and general economic factors to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption "Risk Factors" in the Company's public disclosure documents. Readers are cautioned against attributing undue certainty to forward-looking statements or forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/222781
FAQ
What is the total value of debt facilities arranged by Heliostar Metals (HSTXF)?
When is the expected closing date for Heliostar's acquisition of Mexican assets?
What is the interest rate for Heliostar's working capital facility with Ocean Partners?
What is Heliostar's production growth target following the acquisition?
How much equity dilution will Heliostar experience from this financing arrangement?
