VANCOUVER, BC--(Marketwired - January 04, 2017) - Astar Minerals Ltd. (TSX VENTURE: TAR) ("Astar" or the "Company") is pleased to announce that it has closed its previously announced non-brokered private placement financing (the "Private Placement"). Pursuant to the Private Placement, the Company issued an aggregate of 6,855,332 units (the "Units") at a price of $0.15 per Unit for gross proceeds of $1,028,299.
Each Unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one additional common share in the capital of the Company (a "Warrant Share") at a price of $0.30 per Warrant Share for a period of 36 months from the closing of the Private Placement.
In connection with the Private Placement, the Company paid aggregate cash finders' fees equal to approximately $74,800 and issued 498,667 finders' warrants. The finders' warrants have the same terms as the Warrants forming part of the Units except that they are exercisable at a price of $0.20 per Warrant Share.
Proceeds of the Private Placement will be used for the search and investigation of new opportunities for the Company, and for general working capital. All securities issued pursuant to the Private Placement are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation.
Insiders of the Company have subscribed for Units under the Private Placement. The issuance of Units to insiders pursuant to the Private Placement (the "Insider Participation") will be considered to be a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 ("MI 61-101"). The Company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(b) and 5.7(1)(b) of MI 61-101 in respect of any Insider Participation.
For further information with respect to the Insider Participation, please contact Mr. Stephen Stanley, President & CEO at 604 684-7550.
On behalf of the board of ASTAR MINERALS LTD.
Stephen Stanley, President and CEO
"Neither the 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."
Cautionary Note Regarding Forward-Looking Statements
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to the use of proceeds from the Private Placement. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, the Company's ability to implement its business strategies; risks associated with general economic conditions; adverse industry events; marketing and transportation costs; loss of markets; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; competition; currency and interest rate fluctuations; and other risks. Readers are cautioned that the foregoing list is not exhaustive.
Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this news release represent the expectations of the Company as of the date of this news release, and, accordingly, are subject to change after such date. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.