Heliostar Metals Ltd - HSTXF STOCK NEWS

Heliostar Metals has announced production guidance for July-December 2024 following its acquisition of the San Agustin and La Colorada mines in Mexico. The company expects total gold sales of 19,350-19,750 ounces at cash costs of US$1,500-1,600 per ounce and AISC of US$1,650-1,750 per ounce.

La Colorada continues production from leach pads while evaluating a 4.2 million tonne stockpile for potential restart. San Agustin has ceased mining due to permit constraints but continues producing from existing leach pads. The company has submitted a permit application to expand operations in 2025, without which the mine will transition to care and maintenance.

Heliostar Metals has completed the acquisition of Florida Canyon Gold Inc.'s Mexican mining assets for US$5 million. The acquisition includes the San Agustin mine, La Colorada mine, Cerro del Gallo project, and San Antonio project. The deal eliminates US$20 million in contingent payments related to the Ana Paula project, as well as US$150 million in conditional option payments and a 2% net smelter returns royalty on the San Antonio project. The transaction includes all cash generated since July 11, 2024, minus US$5 million in operating cash flow attributable to FCGI, with a minimum US$2 million net working capital requirement.

Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) has closed two debt facilities totaling US$10 million to support its acquisition of assets from Florida Canyon Gold. The facilities include a Working Capital Facility and Transaction Closing Facility with Ocean Partners USA and Deans Knight Capital Management respectively. The company has drawn US$5 million from the Transaction Closing Facility and has access to an additional US$5 million from the Working Capital Facility. As part of the arrangement, Heliostar issued 1,500,000 common shares subject to a four-month statutory hold period.

Heliostar Metals announced significant drilling results from its Ana Paula project in Guerrero, Mexico. Key findings include a 16.0-metre intersection grading 16.7 g/t gold in a newly discovered zone from hole AP-24-314, and a 6.05-metre intersection grading 8.24 g/t gold from hole AP-24-313. The company is executing a 2,600-metre Phase One drilling program, with plans for an additional 2,400 metres in Phase Two. The results suggest potential expansion of the High Grade Panel by over 115m down plunge and indicate new gold zones surrounding the main panel. Five holes totaling 1994.8 meters have been completed to date.

Heliostar Metals has received clearance from COFECE (Comisión Federal de Competencia Económica) for its planned acquisition of the Mexico Business Unit from Florida Canyon Gold. This regulatory approval was the final major requirement needed before closing the acquisition, which is expected to take place in early November 2024. The company trades under the symbols HSTR on TSXV, HSTXF on OTCQX, and RGG1 on FSE.

Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) has appointed Hernan Dorado as Vice President Sustainability and Special Projects. Dorado brings over 20 years of mining industry experience, most recently as a founding member of Guanajuato Silver, where he held roles including Chief Operating Officer and Chief Sustainability Officer.

Dorado's background includes a Mining Engineering degree, an Executive MBA, and qualification as a mining expert with the Mining and Metallurgical Society of America. CEO Charles Funk highlighted Dorado's proven track record and his role in overseeing permitting, community, and environmental management, as well as advising on the Cerro del Gallo project strategy.

Additionally, Heliostar reported that 3,984,324 warrants have been exercised since September 16th, 2024, contributing $1,195,297 to the company's treasury.

Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) has appointed Mr. Mike Gingles as Vice President Corporate Development. Mr. Gingles brings over 35 years of experience in the mining industry, having led corporate transactions for Pueblo Viejo and Turquoise Ridge, resulting in the development of over 30 million ounces of gold reserves.

Mr. Gingles has worked for major mining companies, including 11 years with Placer Dome (now Barrick Gold). He is a Qualified Professional (QP) member of the Metallurgical & Mining Society of America with expertise in Mineral Valuation Finance. Mr. Gingles holds an MBA from Imperial College Business School, London.

Heliostar CEO, Charles Funk, stated that Mr. Gingles will transition to a full-time role to help the company build towards its initial target of 150,000 ounces of profitable annual gold production.

Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) has commenced a 5,000-metre diamond drill program at its Ana Paula Project in Mexico. The program aims to expand the resource ahead of a planned Feasibility Study in late 2025. The two-phase drilling will test extensions of the High Grade Panel and Parallel Panel targets. Phase one includes seven drill holes totaling 2,600 metres, while phase two consists of eight drill holes totaling 2,400 metres.

The company has also granted 4,675,000 stock options at an exercise price of $0.42 and 1,180,000 restricted share units to directors, officers, employees, and consultants. Additionally, Heliostar has entered into advisory agreements with TSCG Capital Group and 3L Capital Inc., which will receive warrants upon TSX-V approval.

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.