Scottsdale, Arizona--(Newsfile Corp. - February 6, 2025) - TriStar Gold Inc. (TSXV:TSG) (OTCQB: TSGZF) ("TriStar" or the "Company") is pleased to announce that it has closed the first tranche of its non-brokered private placement of up to 11,538,461 common shares announced on January 13, 2025 (the "Offering"). A total of 7,019,777 common shares of the Company were sold under the first tranche of the Offering, at a price of C$0.13 per common share for gross proceeds to the Company of C$912,571.
The Company intends to use the net proceeds of the Offering for general working capital purposes and to further advance its Castelo de Sonhos gold project.
All securities issued in connection with the first tranche of the Offering are subject to a four month hold period expiring on June 7, 2025 in accordance with applicable securities laws and the policies of the TSX Venture Exchange. The Offering is subject to final approval of the TSX Venture Exchange.
Two directors of the Company, Rod McKeen and Jessica Van Den Akker, and the over 10% shareholder Auramet Capital Partners, L.P. ("Auramet") participated in the first tranche of the Offering acquiring 384,000 common shares by Mr. McKeen, 154,000 common shares by Ms. Van Den Akker and 1,666,667 common shares by Auramet. The participation of these insiders constitutes a related party transaction pursuant to Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions ("MI 61-101"). There has not been a material change in the percentage of the outstanding securities of the Company that are individually owed by Mr. McKeen or Ms. Van Den Akker. The change in the percentage of outstanding securities of the Company held by Auramet is described below. The Company is exempt from the requirements to obtain a formal valuation and minority shareholder approval in connection with the participation of the insiders in the Offering in reliance of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the insider participation does not exceed 25% of the Company's market capitalization as determined in accordance with MI 61-101. The Company obtained approval by the board of directors of the Company to the Offering, with Mr. McKeen and Ms. Van Den Akker declaring and abstaining from voting on the resolutions approving the Offering with respect to each of their participation in the Offering. No materially contrary view or abstention was expressed or made by any director of the Company in relation thereto.
Early Warning Disclosure
Auramet acquired 1,666,667 common shares pursuant to the Offering for a total subscription price of C$216,667. Additionally, Auramet reports that 12,500,000 common shares purchase warrants of the Company previously held by Auramet, with an exercise price of $0.30 per common share, expired on April 14, 2024. Auramet is providing the following disclosure pursuant to National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues ("NI 62-103") as Auramet's ownership over the common shares of the Company decreased by more than 2% of the issued and outstanding shares on a partially-diluted basis since the last early warning report filed by Auramet.
Prior to the expiration of the warrants and the acquisition of shares in the Offering, Auramet beneficially owned, and had control and direction over, 38,461,538 common shares and warrants exercisable for 19,230,769 shares, representing approximately 13.74% of the outstanding common shares on an undiluted basis and 19.28% on a partially-diluted basis, assuming the exercise of the warrants held by Auramet, and based upon 279,928,441 shares outstanding.
After the expiration of the warrants and the acquisition of shares in the Offering, Auramet beneficially owns, and has control and direction over, 40,128,205 common shares and warrants exercisable for 6,730,769 shares, representing approximately 13.95% of the outstanding common shares on an undiluted basis and 15.91% on a partially-diluted basis, assuming the exercise of the warrants held by Auramet, and based upon 287,717,448 shares outstanding.
The common shares were acquired by Auramet in the Offering for investment purposes only, and in the future, Auramet may acquire additional securities of the Company, dispose of some or all of the existing securities it holds or will hold, or may continue to hold its current position, depending on market conditions, reformulation of plans and other relevant factors.
An early warning report (the "Report") will be filed by Auramet pursuant to NI 62-103 on SEDAR+ at www.sedarplus.ca under the profile of the Company. To obtain a copy of the Report, please contact Scott Brunsdon, Chief Financial Officer and Corporate Secretary of the Company, at the Company's head address at 7950 East Acoma Drive, Suite 209, Scottsdale, Arizona 85260 or by telephone at 480.794.1244.
Auramet is a limited partnership organized in the State of Delaware and is an investment affiliate of Auramet International, Inc., which conducts physical metals trading, metals merchant banking and project finance advisory. Auramet's office is located at 300 Frank W. Burr Blvd., 5th Floor/Suite 24, Teaneck, New Jersey 07666.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements thereunder.
About TriStar
TriStar Gold is an exploration and development company focused on precious metals properties in the Americas that have the potential to become significant producing mines. The Company's current flagship property is Castelo de Sonhos in Pará State, Brazil. The Company's shares trade on the TSX Venture Exchange under the symbol TSG and on the OTCQB under the symbol TSGZF. Further information is available at www.tristargold.com.
On behalf of the Board of Directors of the Company:
Neither the 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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Forward-Looking Statements
Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation which are not historical facts and are made pursuant to the "safe harbour" provisions under the United States Private Securities Litigation Reform Act of 1995. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects" or "it is expected", or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward looking statements in this press release include all statements regarding the planned completion of the Offering and the planned use of proceeds of the Offering. Such forward-looking statements are based upon the Company's reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause the Company's plans to change include risks related to regulatory approval and permit challenges, changes in demand for and price of gold and other commodities (such as fuel and electricity) and currencies; changes or disruptions in the securities markets; legislative, political or economic developments in Brazil; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of the Company's projects; risks of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
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