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Bluestone Resources Completes $80 Million Financing and Acquisition of Cerro Blanco Gold Project from Goldcorp

Maxis Law (formerly Axium Law) represented Bluestone Resources with a team that included Michael Varabioff, Linda Desaulniers and Helen Racic

On January 11, 2017, Bluestone Resources (“Bluestone”) announced that it had entered into an agreement with Goldcorp Inc. (“Goldcorp”) to acquire Goldcorp’s Cerro Blanco Gold and Mita Geothermal Projects in Guatemala. The purchase price consisted of: (a) US$20 million cash on closing; (b) US$15 million within six months of commencement of commercial production; (c) a 1% NSR royalty; and (d) 9.9% of the outstanding shares of Bluestone. The acquisition was subject to a number of conditions including completion of financing.

An initial working capital convertible note financing of $3.8 million was completed on March 20, 2017.

The main $80 million financing, consisting of subscription receipts exchangeable into common shares was completed on April 20, 2017.

The acquisition was completed on May 31, 2017, and the subscription receipts were converted into common shares in June, 2017, having been qualified by a short form prospectus dated June 15, 2017.

The $80 million financing was led by Cormark Securities Inc. (Toronto), and Cormark was represented by Stikeman Elliott (Toronto).

Bluestone Resources is a mineral exploration and development company that is focused on advancing its 100% owned Cerro Blanco gold and Mita geothermal projects located in Guatemala. Bluestone trades under the symbol “BSR” on Tier 1 of the TSX Venture Exchange.