MONTREAL, QUÉBEC--(Marketwired - Feb. 18, 2014) - NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES
Goldstar Minerals Inc. ("Goldstar" or "the Company") (TSX VENTURE:GDM) announces that it has closed the acquisition of the Lake George Tungsten property in New Brunswick, following completion of its due diligence and the receipt of all regulatory approvals.
As announced on December 24th 2013, the Company entered into a Mineral Option and Sale Agreement with Charles Morrissy with respect to a 46 claim tungsten property covering an area of 9.5 km2 in New Brunswick. The property which is approximately 40 km west of Fredericton and adjacent to the north to the past producing Lake George antimony mine, is close to existing infrastructures and has excellent year-round access.
Upon closing and as provided by the acquisition agreement, Charles Morrissy received a cash payment of $25,000, as well as 100,000 treasury shares. In addition, Goldstar will pay Mr. Morrissy $100,000 on each anniversary date of the closing up to the fifth anniversary to complete the acquisition of a 90% interest in the property. Goldstar can increase its interest to 95% by a further payment of $1,000,000, and 100% by an additional payment of $2,000,000. The Company has also agreed to pay $25,000 to Mr. Morrissy every year for a period of five years as an advance on the $1,000,000 payment referred to in the previous sentence. Concurrent with the closing, the Company also issued 29,230 shares to geologist Luciano Vendittelli, who acted as finder in the transaction. A balance of 70,770 shares will be payable to Vendittelli on February 14, 2015 upon the Company making the first of five annual payments to Charles Morrissy.
Lake George Property
The property lies southeast of the Hackshaw Granite, a phase related to the Pokiok Batholith. A cupola of this granitic body has intruded into Silurian Age Kingslear Group metasedimentary rocks hosting the Lake George Antimony Deposit. Hydrothermal alteration has been observed from historical work and occurs along numerous northerly and easterly trending structures.
Exploration diamond drilling conducted during the late 1970's and early 1980's outlined a broad zone of tungsten bearing scheelite and molybdenite type mineralization located within an area located north of the Lake George mine site. The W-Mo mineralization is hosted within calc-silicate rocks and a network of cross-cutting quartz veinlets which appear to be associated with the presence of a buried monzogranite intrusion located approximately 1.0 km north of the Lake George mine site.
Historical diamond drill holes returned the following tungsten (WO3) assay values:
| Hole # |
Depth (m) |
Width (m) |
WO3 |
| DDH#78-7 |
71.63-76.66 |
5.03 |
0.36% |
| DDH#78-7 |
78.33-82.60 |
4.27 |
0.29% |
| DDH#81-26 |
109.73-248.41 |
138.68 |
0.15% |
Other Corporate Development
The Company announces the resignation of Mr. Simon Marcotte as Director and expects to appoint a new board director in the coming weeks. The Board of Directors is presently comprised of Benoit Moreau, president of Goldstar Minerals; Francois Perron, a Board member of Yorbeau Resources inc. and Apogee Silver Ltd.; Stephen Butrenchuk, a professional geologist and former President and CEO of Gold Ridge Exploration Corp; and Mark Trevisiol, currently President and CEO of Silver Bear Resources.
Qualified Person
The scientific and technical information in this news release has been reviewed and approved by Benoit Moreau, Goldstar Minerals President and CEO, a professional engineer and a qualified person as defined by National Instrument 43-101.
Safe Harbour
Readers are cautioned that historical statements contained within the news release are not 43-101 compliant and are provided on a best effort basis by the Company based on a review of publically available documents relative to the property.
About Goldstar Minerals Inc.
Goldstar Minerals Inc. is a mineral exploration and development stage company listed on the TSX Venture Exchange under the symbol GDM. Currently, its exploration and development projects are located in Quebec.
On behalf of the Board of Directors of GOLDSTAR MINERALS INC.
Benoit Moreau, President and Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration