The deal also cancels $20 million in payments linked to Heliostar’s $30 million acquisition of the Ana Paula project from Argonaut last year, and $150 million in contingency payments on San Antonio from a previous option agreement, Heliostar said.
“The company transitions from single asset developer to a multi-asset producer,” CEO Charles Funk said in a release. “The addition of the two producing gold mines provides cash flow to bring new production online.”
Shares in Heliostar Metals gained 8% to C$0.335 apiece in Toronto by early afternoon Wednesday, valuing the company at C$67.6 million. They’ve traded in a 52-week range of C$0.175 to C$0.36.
Mexican assets
Heliostar aims to reach production of more than 500,000 oz. of gold a year by 2030, the company said in May, from around 200,000 oz. now. It secured C$20 million in debt financing for Ana Paula’s development in May.
Argonaut sold its main asset, the Magino gold…
