Blue Star Gold Corp. intends to raise up to $800,000 through a non-brokered private placement and settle outstanding obligations by issuing common shares, subject to TSX Venture Exchange approval.

The financing involves issuing up to 4,000,000 common shares at a price of $0.20 per share. Proceeds from the placement will be directed toward general working capital, with no finder's fees attached to the offering.

Alongside the capital raise, Blue Star plans to settle $127,798.66 in debt by issuing 638,993 common shares at a deemed price of $0.20 per share. The settlement covers past director services and unpaid finder's fees owed to an arm's length party.

Dr. Georg Pollert, a director and controlling shareholder, is participating in both the private placement and the debt settlements. Because of Dr. Pollert's participation, the share issuances constitute a related party transaction under Multilateral Instrument 61-101. Blue Star relied on exemptions from formal valuation and minority shareholder approval requirements based on the fair market value not exceeding 25% of the company's market capitalization.

All shares issued under the private placement and debt settlements will be subject to a four-month and one-day hold period under Canadian securities laws and exchange rules.

In addition to its flagship Ulu Gold Project, Blue Star holds five other active exploration properties in Nunavut's High Lake Greenstone Belt, comprising Atanni, Auma, Avalliq, Hood River, and Roma.

Read the full announcement: Blue Star Announces Non-Brokered Private Placement and Proposed Debt Settlement