More NewsWellStar Announces Financing with the MineralFields Group
April 25, 2007
WellStar Energy Corp. (WST) (the “Company”) is pleased to announce that it has negotiated a nonbrokered
private placement (the “Financing”) with the MineralFields Group to raise gross proceeds of
$500,000.
Under the terms of the Financing, the Company will issue 1,428,570 flow-through units (the “Units”) at a
price of $0.35 per Unit. Each Unit will consist of one (1) flow-through common share (the “FT Shares”) and
one (1) non flow-through share purchase warrant (the “Warrants”). Each Warrant will be transferable and
will entitle the holder to purchase one additional non flow-through common share, exercisable at a price of
$0.40 per share during the first year and $0.50 per share during the second year, from the date of closing of
the Financing. The FT Shares will entitle the holder to receive the tax benefits applicable to flow-through
shares, in accordance with the provisions of the Income Tax Act (Canada).
The Company will use the net proceeds from the sale of the FT Units for exploration work on the Kulyk
Property, in Saskatchewan in the Wollaston domain along side the Athabasca Basin, which the Company
recently optioned to acquire a 60% interest from Eagle Plains Resources Ltd.
Limited Market Dealer Inc. will obtain a cash finder’s fee of 5% of the funds raised (no GST payable), and a
finder’s fee option to acquire Units (the “Compensation Units”) equal to 10% of the total number of Units
sold, exercisable at $0.35 per Compensation Unit for a term of two years, and a due diligence fee equal to
5% of the funds raised (with GST). The finder’s warrants will be on the same terms as the Subscriber’s
warrants. There will also be an additional cash finder’s fee of 2% to an arm’s length finder.
“We are pleased to be entering into this relationship with MineralFields Group”, said Andrew Rees,
President & CEO. “This is an important milestone in the growth of WellStar Energy Corp. and we look
forward to working with MineralFields Group as we develop our resource property interests in Canada.”
About MineralFields
MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with
significant assets under administration that offers its tax-advantaged super flow-through limited partnerships
to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited
partnerships to investors throughout the world. Pathway Asset Management also specializes in the
manufacturing and distribution of structured products and mutual funds. Information about MineralFields
Group is available at www.mineralfields.com.
For further information contact:
Andrew H. Rees, President & C.E.O.
Tel: 604-682-3737
Toll Free: 1-886-666-7970
Email: andrewhr@wellstarenergy.com