01:03 PM EDT, 05/07/2024 (MT Newswires) -- Heliostar Metals ( HSTXF ) entered into a non-binding letter of intent for a US$20 million senior secured debt facility, with a syndicate of lenders.

Net proceeds will be used to advance the underground decline and complete test mining to process a bulk sample from the Ana Paula deposit in Guerrero, Mexico, the company said.

The facility is expected to have a 30-month term and is subject to an annual interest rate of 10%. It allows for the early repayment at any time, and calls for Heliostar to make repayments equal to the number of ounces of gold sold multiplied by US$1,850 per ounce, net of operating expenses.

Heliostar shares were last seen down C$0.005 to C$0.305 on the TSX Venture Exchange.

Price: 0.31, Change: -0.01, Percent Change: -1.61