That was quick, cashed up ready for production
Eagle Star closes $2.39-million first tranche
2014-02-26 15:07 ET - News Release
Mr. Eran Friedlander reports
EAGLE STAR CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT IN THE AMOUNT OF $2.39 MILLION CND
Eagle Star Minerals Corp. has closed the first tranche of its non-brokered private placement in the amount of 12 million units or $2,394,000 at a price of 19 cents per unit, previously announced Feb. 21, 2014. Each unit comprises one common share. There are no warrants attached to this offering.
Units in relation to this first tranche closed are subject to TSX Venture Exchange approval. The securities in connection with the offering are subject to a four-month-and-one-day hold period that expires Feb. 27, 2014, in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws.
Eagle Star would like to welcome M&G Investments as a major shareholder to the company. M&G Investments is one of United Kingdom's largest and longest-established investment houses. With more than 80 years experience, M&G is known for its long-term and conviction-led approach to investing. Today M&G manages assets in excess of 242 billion British pounds in equities, multiasset, fixed income, real estate and cash for clients across Europe and Asia.
"We couldn't ask for a better partner to assist us with moving Eagle Star to its next stage of development. M&G has an impeccable reputation in the financial world, and we are therefore thrilled about their decision to invest in the company," commented Eran Friedlander, president and chief executive officer.
Use of proceeds
The proceeds from the concurrent financing will be used toward the acquisition and implementation of a direct application natural fertilizer (DANF) processing facility as part of the company's plans to commence development of its stage 1 production capacity in 2014. In addition, continued drilling is planned on selected targets already identified throughout Bomfim claims as part of the company's objective to further expand and delineate potential resources on the property. Flotation and solubility bulk testing are continuing at Bomfim, and a thermal phosphate process is currently being investigated as part of Eagle Star's stage 2 production development plans.
The company may pay a finder's fee to one or more arm's-length parties on a portion of the private placement in accordance with the policies of the TSX Venture Exchange.