Toronto, Ontario--(Newsfile Corp. - July 8, 2021) - Eric Sprott announces that today, 2176423 Ontario Ltd., a corporation which is beneficially owned by him, entered into an agreement to purchase 17,336,339 common shares (Shares) of Canstar Resources Inc. (representing an increase of approximately 17.4% of the outstanding Shares on a partially diluted basis since the filing date of the most recent Early Warning Report) at a price of $0.375 per Share for aggregate consideration of $6,501,127. The Shares were purchased by way of private agreement with a single vendor at a price less than 115% of the "market price" of the Shares in reliance on the" private agreement exemption" in Section 4.2 of National Instrument 62-104 Take-Over Bids and Issuer Bids. 2176423 Ontario Ltd. is beneficially owned by Eric Sprott.
After the closing of this private agreement purchase (expected to occur in two tranches on or about July 15, 2021 and August 17, 2021), Mr. Sprott will beneficially own and control 27,863,339 Shares and 10,527,000 Share purchase warrants representing approximately 32.0% of the outstanding Shares on a non-diluted basis and approximately 39.3% on a partially diluted basis assuming the exercise of such warrants. Mr. Sprott currently beneficially owns and controls 10,527,000 Shares and 10,527,000 warrants of the Company (representing approximately 12.1% on a non-diluted basis, and approximately 21.6% on a partially diluted basis).
The Shares will be acquired by Mr. Sprott, through 2176423 Ontario for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Canstar Resources including on the open market or through private acquisitions or sell securities of Canstar Resources including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.
Canstar Resources Inc., is located at 220 Bay Street, Suite 550 Toronto, ON M5J 2W4. A copy of 2176423 Ontario's early warning report will appear on Canstar Resources's profile on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and may also be obtained by calling Mr. Sprott's office (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
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