Star Minerals Group Ltd. Announces Consolidation and Proposed Private Placement of Units
16 Dezember 2013 - 10:09PM
Marketwired
Star Minerals Group Ltd. Announces Consolidation and Proposed
Private Placement of Units
SASKATOON, SASKATCHEWAN--(Marketwired - Dec 16, 2013) - Star
Minerals Group Ltd. ("Star" or the "Company") (TSX-VENTURE:SUV)
announces that it intends to complete a non-brokered private
placement offering of units ("Units") at a price of $0.24 per Unit
for aggregate gross proceeds of up to $1,000,000 (the "Offering").
Each Unit will be comprised of three (3) common shares in the share
capital of the Company ("Common Shares") issued on a "flow through"
basis, as defined in the Income Tax Act (Canada) (the
"Flow Through Shares"), one (1) non-flow through Common Share (the
"Non-Flow Through Shares") and one half of one (1/2) Common Share
purchase warrant (each whole warrant, a "Warrant"). The Offering
will be completed following the completion of the Consolidation, as
defined below. The price of each Unit will be based on the market
price of the Common Shares on the TSX Venture Exchange following
the Consolidation. Each Warrant will be exercisable for a period of
two (2) years from the date of issuance at an exercise price of
$0.09 for the first year and $0.105 for the second year.
The proceeds of the Offering attributable to the sale of the
Flow Through Shares will be used to fund expenditures on Star's
existing mineral properties and a preliminary economic assessment
on the Hoidas Lake Rare Earth Project pursuant to the option and
joint venture agreement (the "Option and Joint Venture Agreement")
between the Company and Great Western Minerals Group Ltd., as more
particularly disclosed in the Company's news release dated December
4, 2013, once the transactions contemplated by the Option and Joint
Venture Agreement have closed.
The proceeds of the Offering attributable to the sale of the
Non-Flow Through Shares will be used for general working
capital.
A finder's fee of up to 6% of the gross proceeds of the Offering
may be paid in cash on all or any part of the Offering.
All securities issued pursuant to the Offering will be subject
to a statutory hold period expiring four months after the date of
the issuance of the securities.
The Company further announces that it intends to consolidate the
Common Shares (the "Consolidation"). At the annual general and
special meeting of shareholders of the Company on August 27, 2013,
shareholders authorized the directors to amend the Articles of the
Company to consolidate its common shares on the basis of one (1)
post-Consolidation common share for up to every ten (10)
pre-Consolidation common shares issued and outstanding immediately
prior to the Consolidation. The Consolidation will proceed on the
basis of one (1) post-Consolidation common share for every three
(3) pre-Consolidation common shares.
The Offering and the Consolidation are both subject to
regulatory approval, including the approval of the TSX Venture
Exchange.
About Star Uranium Corp.
Star is a Canadian based entity focused on the strategic
acquisition and development of resource properties on a worldwide
basis.
Forward-Looking Statements
This news release contains certain statements which constitute
forward-looking statements or information ("forward-looking
statements"), including statements regarding the proposed
Consolidation, the Offering and the use of proceeds therefrom. Such
forward-looking statements are subject to numerous risks and
uncertainties, some of which are beyond Star's control, including
the impact of general economic conditions, industry conditions,
volatility of commodity prices, currency fluctuations, competition
from other industry participants, stock market volatility and the
ability to access sufficient capital from internal and external
sources. Although Star believes that the expectations in its
forward-looking statements are reasonable, they are based on
factors and assumptions concerning future events which may prove to
be inaccurate. Those factors and assumptions are based upon
currently available information. Such statements are subject to
known and unknown risks, uncertainties and other factors that could
influence actual results or events and cause actual results or
events to differ materially from those stated, anticipated or
implied in the forward looking information. Such factors may
include the failure of Star to successfully market the Units,
failure of the board of directors to approve the Consolidation and
failure to satisfy certain conditions in connection with the
issuance of the Units. As such, readers are cautioned not to place
undue reliance on the forward looking information, as no assurance
can be provided as to future results, levels of activity or
achievements. Other factors that could materially affect such
forward-looking statements are described in the risk factors in the
most recent management's discussion and analysis that is available
on the Company's profile on SEDAR at www.sedar.com. Readers are
cautioned that the foregoing list of factors is not exhaustive. The
forward-looking statements contained in this document are made as
of the date of this document and, except as required by applicable
law, Star does not undertake any obligation to publicly update or
to revise any of the included forward-looking statements, whether
as a result of new information, future events or otherwise. The
forward-looking statements contained in this document are expressly
qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Star Minerals Group Ltd.Jim
Engdahl306-664-3828306-244-0042info@staruranium.comwww.staruranium.com
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