Starcore International Ventures Ltd.
TSX VENTURE : SAM

Starcore International Ventures Ltd.

May 12, 2006 09:00 ET

RETRANSMISSION: Starcore to Raise $30 Million for Acquisition of the San Martin Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 12, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Starcore International Ventures Ltd. (the "Company") (TSX VENTURE:SAM) is pleased to announce that it has engaged Bolder Investment Partners, Ltd. (the "Agent") in connection with a proposed private placement (the "Offering"), on a best efforts basis, of up to 50,000,000 subscription receipts of the Company (the "Subscription Receipts") at a price of $0.60 per Subscription Receipt, for gross proceeds of up to $30 million. The proceeds of the Offering will be held in escrow and released to the Company upon the acquisition of the San Martin Mine by the Company. Upon such acquisition, each Subscription Receipt will be exchanged for one unit of the Company consisting of one common share of the Company and one-half of one non-transferable common share purchase warrant (a "Warrant"). Each Warrant is exercisable into one additional common share of the Company for a period of three years from the closing of the Offering at an exercise price of $1.00. The Warrants include an early expiry feature which the Company may trigger should the common shares close above $2.50 over a minimum period of forty-five calendar days. The Agent will have the option to increase the size of the Offering by up to 10% to cover over-allotments.

The Agent will receive a cash commission of 6% of total proceeds raised and warrants exercisable to purchase common shares of the Company equal in number to 8% of the number of Units issued, at a price of $1.00 per common share, exercisable for a period of two years from closing. The Company will also pay the Agent a work fee of $10,000.

The net proceeds from the Offering will be used to pay for the purchase of the San Martin Mine from Luismin S.A. de C.V. (a wholly owned subsidiary of Goldcorp Inc.) previously announced by the Company on March 16, 2006 and for general corporate purposes. Completion of the Offering is subject to receipt by the Company of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. For more information on the Company visit our website at www.starcore.com.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

ON BEHALF OF THE BOARD

Robert Eadie, Chief Executive Officer and Director


The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Starcore International Ventures Ltd.
    Robert Eadie
    Chief Executive Officer and Director
    (604) 602-4935 or Toll Free: 1-866-602-4935
    (604) 602-4936 (FAX)
    info@starcore.com
    www.starcore.com