Polar Star Mining (TSX:PSR, StockForum), a Toronto-based company engaged in the exploration and development of mineral claims in Canada and Chile while mining and producing gold-copper concentrate in Chile, announced today that the company had entered into a sales and purchase agreement with Xtract Resources for, among other things, Xtract's Chepica gold and copper mine positioned 300km south of Santiago, Chile.
According to the agreement which is scheduled to conclude January 2014, Xtract is to acquire 100% of the shares of Barbados subsidiary of Polar. This subsidiary owns 100% of a Chilean entity which holds an option to acquire 100% of the Chepica gold and copper mine. This option also includes the adjoining Talca exploration licenses and the Mejillones Phosphate Property.
The news release detailed the deal, “Consideration for the transaction includes 500,000,000 Xtract common shares valued at £1,250,000. In addition Xtract will assume approximately USD$1.25 million of liabilities associated with the Chilean entity.”
It went on to explain, “The transaction is conditional upon, among other things, a successful financing by Xtract of not less than £1.5 million, the issue of a title opinion confirming the title ownership of the Chepica Mine interest and the Talca licenses and certain regulatory requirements of the AIM exchange.”
Polar Star Mining was in the news recently when the company entered into a MOU for exclusive access to Chepica.
Shares rose 11.11% on the news to $0.15 per share.
Currently there are 191,905,664 outstanding shares with a market cap of $28.79 million.