Blue Star Gold closes $800K private placement and debt settlement

Blue Star Gold Corp. (TSXV: BAU) (OTCQB: BAUFF) (FSE: 5WP0) has completed a non-brokered private placement raising $800,000 through the issuance of 4,000,000 common shares at $0.20 per share, according to a company statement.

The proceeds will be used for general working capital. No finder's fees were paid in connection with the placement.

The company also completed debt settlements by issuing 638,993 shares at a deemed price of $0.20 per share, extinguishing $127,798.66 in outstanding debts. The debts relate to director services provided by Dr. Georg Pollert from January 2021 through May 31, 2026, and unpaid finder's fees owed to an arm's length party from private placements that closed in May 2025 and July 2026.

Dr. Georg Pollert, a director and controlling shareholder, participated in both the private placement for 4,000,000 shares and the debt settlements for 388,993 shares. The company classified these issuances as a related party transaction under Multilateral Instrument 61-101. Blue Star relied on exemptions from formal valuation and minority shareholder approval requirements under sections 5.5(a) and 5.7(1)(a) of MI 61-101, citing fair market value not exceeding 25% of market capitalization.

All shares issued are subject to a four-month and one day hold period under Canadian securities laws. Both the private placement and debt settlements remain subject to final approval from the TSX Venture Exchange.

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