Urastar Energy Inc.

Urastar Energy Inc.

February 01, 2011 23:29 ET

Urastar Announces $5 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2011) - Urastar Energy Inc.(TSX VENTURE:URS) (the "Company") has launched an equity financing and intends to complete a private placement for the sale of up to 12,500,000 units at a cost of $0.40 per unit for a total of $5,000,000, where each unit consists of one common share of the Company and one share purchase warrant having a five year term for the purchase of one common share of the Company at the exercise price of $0.75 per share.

The Company shall use the proceeds of the offering for exploration costs on its projects in Mexico and for general working capital. This private placement is subject to the approval by the TSX Venture Exchange.

A finder's fee of a combination of cash, shares and/or warrants will be paid to eligible finders in relation to this financing, all in accordance with regulatory policies.

The Company has granted 1,800,000 stock options to directors, officers and consultants of the Company. The stock options are exercisable at $0.50 for a period of five years from February 1, 2011 and will expire on January 31, 2016.

For further details on the Company please go to www.urastarenergy.com.

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.

Contact Information

  • Urastar Energy Inc.
    John Morita
    CFO and Director
    Launch IR
    Matt Harrington