Blue Star Gold Corp. announced plans for a non-brokered private placement to raise up to $2 million through the issuance of as many as 7,692,307 flow-through shares priced at $0.26 per share, subject to approval from the TSX Venture Exchange.
The company said each issued flow-through share will qualify as a “flow-through share” under the Income Tax Act (Canada). Proceeds from the financing will be used to fund eligible Canadian exploration expenses that qualify as “flow-through mining expenditures” connected to Blue Star’s mineral projects in Nunavut.
Blue Star added that it intends to renounce qualifying expenditures with an effective date no later than December 31, 2027, in an amount equal to the total gross proceeds raised through the offering. The company also plans to incur those qualifying expenditures by December 31, 2027.
All securities issued under the financing will be subject to a statutory hold period of four months and one day under Canadian securities laws and any applicable TSX Venture Exchange hold periods. The company noted that finder’s fees may be paid to eligible parties in connection with the financing.
Blue Star Gold is a mineral exploration and development company focused on Nunavut, Canada. The company controls more than 420 square kilometers of mineral properties in the High Lake Greenstone Belt. Its principal assets include the Ulu Gold Project, which consists of the Ulu Mining Lease and Hood River Property, along with the Roma and Auma projects.
The Ulu Mining Lease hosts the high-grade Flood Zone Gold Deposit, while the company’s broader land package contains multiple gold and critical mineral exploration targets that Blue Star believes provide additional resource expansion potential.
The company also highlighted the strategic positioning of its projects, which are located approximately 40 to 100 kilometers south of the proposed Grays Bay deep-water port. The planned Grays Bay Road corridor is expected to pass near Blue Star’s projects. According to the company, the Grays Bay Road and Port Project was recently referred to the Major Projects Office by Prime Minister Mark Carney as part of efforts to accelerate nationally significant infrastructure developments.
