Globestar Mining Corporation

Globestar Mining Corporation

August 09, 2005 09:19 ET

GlobeStar Mining Corporation Announces Brokered Private Placement Increased to C$3,500,000

TORONTO, ONTARIO--(CCNMatthews - Aug. 9, 2005) - Not for distribution to United States newswire services or for dissemination in the United States.

GlobeStar Mining Corporation (TSX VENTURE:GMI) ("GlobeStar" or the "Company") is pleased to announce that, further to its press release dated July 18, 2005, the Company has increased the size of the previously announced private placement financing to provide for the issuance of up to 8,750,000 units of the Company (the "Offering"). Jennings Capital Inc. ("JCI") has been retained by the Company to act as agent in connection with the Offering.

Under the Offering, the Company will offer 7,500,000 units of the Company (the "Units") at a price of C$0.40 per Unit, for aggregate gross proceeds to the Company of C$3,000,000. Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant of the Company (the "Warrants"). Each full Warrant will be exercisable by the holder thereof to purchase one common share of the Company at a price of C$0.50 for a period of 24 months after the date of the closing of the Offering.

The Company and JCI have exercised the over allotment option to provide for the offering up to an additional 1,250,000 Units for additional gross proceeds to the Company of up to C$500,000. The Offering will be conducted on a best efforts basis.

As compensation for the services provided to the Company by JCI in connection with the Offering, JCI will receive a cash commission equal to 8 percent of the gross proceeds raised under the Offering. JCI will also receive a broker warrant exercisable to purchase that number of common shares of the Company that is equal to 8 per cent of the aggregate number of Units sold pursuant to the Offering, at a price of C$0.40 per common share for a period of 24 months after the date of the closing of the Offering.

The Offering is scheduled to close on or about August 24, 2005.

The net proceeds of the Offering will be used for working capital purposes and to advance the Cerro de Maimon project of the Company.

Completion of the Offering is subject to receipt by the Company of all necessary regulatory approvals. The securities to be issued under the Offering will be subject to a four-month hold period.

This Press release share not constitute an offer to sell of the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of GlobeStar Mining Corporation are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

GlobeStar is a mineral exploration company with advanced stage properties in the Dominican Republic and Quebec and is developing the proposed Cerro de Maimon copper/gold mine. For more information visit the Company Website at The shares are listed on the TSX Venture Exchange and trade under the symbol "GMI".

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and the TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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