Mr. Charles Funk reports

HELIOSTAR FULLY REPAYS ACQUISITION LOAN WITHIN 3 MONTHS

Heliostar Metals Ltd. has repaid the $5-million (U.S.) loan obtained from Deans Knight Capital Management Ltd. on Nov. 6, 2024. The loan was used to acquire the portfolio of operating and development assets in Mexico from Florida Canyon Gold Inc.

Heliostar chief executive officer Charles Funk commented: "Repayment of this loan is another significant milestone for Heliostar. In November, 2024, the company completed the acquisition of producing gold assets with a clear upside for less than 1-per-cent equity dilution by taking on debt. Using debt was assessed to be the best outcome for shareholders to minimize dilution. Making the repayment earlier than had been expected, within approximately three months of the asset acquisition, speaks to the free cash flow generation from our operating mines and the company's fiscal discipline. Looking forward, being debt-free allows all profits generated from operations to be reinvested directly into our company's growth. This reinvestment will focus on expanding production and growing resources across our portfolio throughout 2025."

Debt facility details

On Nov. 6, 2024, the company entered into purchase agreements for up to $5-million (U.S.) in senior secured term notes from Deans Knight Capital Management on behalf of certain investors. The notes were to mature on Nov. 30, 2026, and the drawn portion bore interest at 15 per cent per year.

Heliostar fully drew the notes on Nov. 6, 2024. The company repaid $2-million (U.S.) in December, 2024, and the remaining $3-million (U.S.) in February, 2025, to extinguish the notes and the associated security pledges.

About Heliostar Metals Ltd.

Heliostar aims to grow to become a mid-tier gold producer. The company is focused on increasing production and developing new resources at the La Colorada and San Agustin mines in Mexico, and on developing the 100-per-cent-owned Ana Paula project in Guerrero, Mexico.

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