First Star Resources Inc V.FS

$1.5-million private placement

[ritespec]

 

2011-06-30 20:24 ET - News Release

Mr. John Campbell reports

FIRST STAR RESOURCES NEWS RELEASE - $1,500,000 PRIVATE PLACEMENT

First Star Resources Inc. has arranged a non-brokered private placement of up to 10 million units at a price of 15 cents per unit for a total of $1.5-million. Each unit will be composed of one common share and one non-transferable common share purchase warrant of the company. Each warrant will entitle the holder to purchase one common share for a period of 24 months from the closing date at an exercise price of 20 cents per warrant share, subject to the company's right of acceleration described herein. The company may, in its sole discretion but only in the event that the average trading price of the common shares on the TSX Venture Exchange has been 45 cents per share or greater for a period of 10 days, accelerate the expiry period of the warrant by providing written notice of such acceleration by way of news release, such that the exercise period of the warrant will expire on that day which is 30 days from date of the company's acceleration notice.

The company may, in its sole discretion, pay a finders' fee to agents of the company consisting of: (i) a cash fee in an amount of up to 8 per cent of the proceeds raised by such agent as part of this offering, and (ii) a number of agents' warrants, entitling the holder thereof to purchase that number of common shares of the issuer that is equal up to 8 per cent of the number of units placed through the agent as part of this offering. The proceeds raised will be used for exploration on the company's Alaskan properties and general working capital.

The offering is subject to TSX Venture Exchange approval.