VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 29, 2014) - Estrella Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is pleased to announce that the Board of Directors has appointed Mr. Jason Weber, P. Geo. as the new President and CEO of the Company and it has agreed to raise $500,000 by way of a private placement of 10 million units (the "Units") which is $0.05 per Unit.
New President and CEO - Mr. Jason Weber, P. Geo.
Mr. Weber comes to Estrella with over 20 years of experience in mineral exploration, project and corporate development, marketing and financing junior companies. Most recently he held the position of President and CEO of Kiska Metals Corporation, where he was responsible for the exploration and development of the company's Whistler gold-copper porphyry project in Alaska as well as advancing gold and copper projects in Kiska's exploration portfolio through option/joint venture agreements.
Mr. Weber was previously President and CEO of Rimfire Minerals Corporation, a prospect generator/joint venture company that successfully developed business partnerships ranging from exploration alliances to option joint ventures with many of the world's large gold producers, including Newmont, Barrick and AngloGold Ashanti.
Mr. Weber is also the volunteer Chair of Mining for Miracles, the BC Mining industry's charity for BC Children's Hospital. He is past Chair of Mineral Exploration Roundup, one of the world's largest annual mineral exploration conferences and was a Director of the Association for Mineral Exploration British Columbia (AMEBC).
He holds a Bachelor of Science (B.Sc.) degree in Geological Sciences from the University of British Columbia and is a registered Professional Geoscientist with the Association for Professional Engineers and Geoscientists of BC (APEGBC). He also sits on the Board of Clear Creek Resources Ltd. and Tarsis Resources Ltd.
The Board would also like to sincerely thank Mr. John R. Wilson who is retiring from Estrella as President and CEO but will continue on as a Director and technical advisor. Mr. Wilson guided the Company carefully and successfully during a very difficult financial market and managed to streamline the Company while moving key projects forward. Mr. Wilson has added significant value to the Company and leaves the Company in a much stronger position.
Each $0.05 Unit consists of one common share and one common share purchase warrant which allows the holder to buy one common share per warrant held for a period of 3 years at $0.10 per share. Insiders are buying at least 20% of this offering. Estrella will issue a maximum of 10 million units at this price to avoid further dilution. Estrella has not raised any funds since October 9, 2012 and has 31.65 million common shares outstanding, 10.45% of which are held by insiders.
Estrella's flagship project is its namesake La Estrella Gold-Silver Project. This project hosts a drill-indicated zone of gold-silver mineralization which is approximately 1,700 meters long and 300-500 meters wide. Additionally, a second, 1,300 long by 400 meter wide, poorly tested, high priority target has been delineated northwest of the main zone of known gold-silver mineralization, and it is believed that the project has significant up-side mineral potential. Estrella has several parties reviewing the project data and plans to find a qualified partner to advance the project. A systematic review of the project data is ongoing and the Company will continue to market the project to potential partners.
Estrella also owns a 50% interest in the Yanac Joint Venture in Dpto. Ica in southern Peru with partner Cliffs Natural Resources. Cliffs is actively exploring the project and drilling is planned for later this year. Drilling will be funded as part of Cliffs' US$4 million earn-in for an additional 20% interest in the project. There are no ongoing holding costs for Estrella on this project.
Estrella holds a 1.08% NSR on the Purcarana property in the Orcopampa district of southern Peru. This property is near Buenaventura's current operating Chipmo mine and there are no holding costs for Estrella on this project.
Estrella also owns the Isy Project in Peru. Lara Exploration Ltd. ("Lara") has (at its option) final payments of $100,000 in cash and 50,000 common shares due in January, 2015 to complete its purchase of the project. There are no holding costs for Estrella for this project. Upon completion of the sale, Estrella will receive a 1.5% NSR on the project, of which Lara can buy 50% for $3 million within one year of commencement of production from the project.
The funds raised in the financing will be used for working capital and to seek partners for 4 additional wholly-owned Peruvian projects:
- Henry Sur Project (Dpto. Ica): Copper porphyry/skarn project
- Ayoque Project (Dpto. Ica): IOCG-type Cu project
- Periquito Project (Dpto. Ica): IOCG-type Cu project
- Chicha Project (Dpto. Lima): Magnetite-Copper prospect
Estrella's geological team has been active in reviewing new projects in Peru, and in other South American countries. Management will continue to do so, with the aim of adding quality exploration early-stage projects to the Company's portfolio that are available due to current market conditions.
Mr. Jason Weber, President and CEO of Estrella commented, "We are pleased that Cliffs will continue advancing the Yanac Project in 2014. The drill program exposes Estrella's shareholders to a potential discovery and provides a cornerstone for us to build around. Our goal now is not only to find partners for the remaining projects in the portfolio, but to expand that portfolio to ensure a pipeline of discovery opportunities going forward."
Post Financing Share Structure
Upon completion of the financing, Estrella's share structure will be as follows:
||Average exercise price: $0.29
||Average exercise price: $0.17
||Average exercise price: $0.15
The Board of Directors has also approved the grant of 300,000 options at $0.08 per share under the Company's stock option plan. These options are included in the summary above.
About Estrella Gold Corporation (TSX VENTURE:EST)
Mineral exploration is inherently risky and Estrella increases the chances of success as a "Prospect Generator" focused on gold exploration in Latin America. Estrella identifies and acquires new mineral properties, conducts initial, low-cost exploration to define a new targets and then seeks joint ventures with other companies that will provide funding for more advanced exploration. Estrella has three properties optioned out or held in joint venture agreements. The Company has 31.6 million shares issued and outstanding, and is listed on the TSX Venture Exchange (TSX VENTURE:EST). Mr. John Wilson, BSc, MS, is a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and has reviewed and verified the technical information contained in this news release.
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. STATEMENTS IN THIS NEWS RELEASE, OTHER THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.