VANCOUVER, May 27, 2011/CNW/ – First Star Resources Inc. (TSX-V: FS) (the “Company”) announces that further to its news releases dated March 25, 2011 and May 12, 2011, it has completed the first tranche of its non-brokered private placement of 6,008,000 units at a price of .15 per unit for gross proceeds of $901,200 (the “Offering”).
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Each unit consists of one common share and one non-transferable common share purchase warrant of the Company. Each warrant will entitle the holder to acquire one common share of the Company at a price of .20 per common share until May 27, 2013 subject to the Company’s right to accelerate the expiry date of the warrants if the average trading price of the common shares of the Company on the TSX Venture Exchange is equal to or exceeds .45 per common share for a period of 10 days during the term of the warrant.
The Company paid cash commissions to finders totaling $39,721.50.
The common shares and warrants issued pursuant to the private placement and any common shares issued on exercise of the warrants are subject to 4-month resale restriction that expires on September 28, 2011.
The proceeds raised will be used for general working capital.
About First Star Resources Inc.
First Star Resources is a junior exploration company focused on gold exploration in the world famous Tintina Gold belt in Alaska. The Tintina Gold belt hosts major gold deposits and several mines, such as: Fort Knox Mine-3.7 million oz gold, the Donlin Creek deposit 33.5 million oz. gold, the Livengood deposit, 8.1 million oz gold, White Gold deposit 1.4 million oz gold (recently taken over by Kinross Gold Corp), and the Pogo Mine 5.6 million oz gold, which is adjacent to one of First Stars Resources’ key targets for this year, and the WP property. International Tower Hill (ITHT) spent millions of dollars on the WP and LMS properties which they optioned to First Star Resources after they made their discovery at Livengood. Both of these properties have well defined gold targets. First Star Resources recently completed drilling on the LMS, property and now is in the planning stages for its work programs set for early 2011.
ON BEHALF OF THE BOARD
John Campbell CEO
Visit the Company’s website,
https://firststarresources.ca/
For More Information Contact:
Investor Relations
604-608-0300
ir@FirstStarResources.ca