First Star completes $1.2m private placement financing
Friday, June 24, 2011 by Brad Lamaire
Vancouver-based First Star Resources (CVE:FS),a junior mineral explorer, reported on Monday that it has completedits second and final tranche of its $1.2 million non-brokered privateplacement financing.
In the final tranche, the company sold 2 million units at a price of 15 cents each for a total of
.3 million.
Each unit consists of one common share and one non-transferablecommon share purchase warrant, with each whole warrant giving the holderthe right to acquire one common share for 20 cents until June 20,2013.
The company has the right to accelerate the expiry date if theaverage trading price of common shares is equal to or exceeds 45 cents ashare for a period of 10 days, First Star said in a statement.
The first tranche, which closed at the end of May, consisted of justover 6 million units for 15 cents each, for a total of 0.9 million.
The company said proceeds would be used for general working capital.First Star paid finders’ fees totalling $39,721.50 in cash inconnection with the offering.