CORMAN PARK, SASKATCHEWAN--(Marketwired - Jan. 2, 2014) - Further to disclosure requirements of applicable securities laws, Kevin Hegedus ("Hegedus") reports that on December 31, 2013, he, together with Kevin Hegedus Financial Services 2007 Corp. ("Financial Services"), a corporation wholly owned by Hegedus, acquired ownership and control over 1,245,000 units ("Units") of Star Minerals Group Ltd. ("Star" or the "Company") at a price of $298,800 pursuant to a private placement (the "Transaction"). The Units are each comprised of three (3) common shares in the share capital of the Company ("Common Shares") issued on a "flow through" basis, as defined in the Income Tax Act (Canada) (the "Flow Through Shares"), one (1) non-flow through Common Share (the "Non-Flow Through Shares") and one half of one (1/2) Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant is exercisable for a period of two (2) years from the date of issuance at an exercise price of $0.09 for the first year and $0.105 for the second year. Star's shares are listed on the Canadian National Stock Exchange under the symbol "SUV".
Hegedus, together with Financial Services now own and control 4,980,000 Common Shares representing 16.4% of the issued and outstanding Common Shares of Star on a non-diluted basis. Hegedus, together with Financial Services also beneficially own and control 622,500 Warrants. If Hegedus and Financial Services were to exercise all of their Warrants, they would hold a total of 18% of the issued and outstanding Common Shares of Star on a diluted basis.
The Transaction was made for investment purposes. Hegedus does not have any present intention to acquire ownership of, or control over, additional securities of Star. It is Hegedus's intention to evaluate his investment in Star on a continuing basis and such holdings may be increased or decreased in the future depending on market conditions or any other relevant factors.
The Units issued pursuant to the Transaction were distributed pursuant to the exemptions from the prospectus and registration requirements set out in section 2.3 of National Instrument 45-106 - Prospectus and Registration Exemptions.
Hegedus will be filing a report under National Instrument 62-103 - The Early Warning System of the Canadian Securities Administrators in connection with the Transaction.