Blue Star Gold plans private placement and debt settlement

Blue Star Gold Corp. (TSXV: BAU) (OTCQB: BAUFF) (FSE: 5WP0) announced plans for a non-brokered private placement to raise up to $800,000 through the issuance of up to 4,000,000 common shares at $0.20 per share, subject to approval from the TSX Venture Exchange.

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

Blue Star also announced a debt settlement through the issuance of 638,993 shares at a deemed price of $0.20 per share, totaling $127,798.66, to settle debts related to past director services and unpaid finder's fees owed to an arm's length party.

Dr. Georg Pollert, a director and controlling shareholder of the company, is participating in both the private placement and the debt settlement. The company said this makes the transactions related party transactions under Multilateral Instrument 61-101. Blue Star said it 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 under the private placement and debt settlement will be subject to a four-month and one day hold period under Canadian securities laws and, where applicable, the exchange hold period.

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