Urastar Energy Inc.

Urastar Energy Inc.

March 29, 2011 15:07 ET

Urastar Closes $5 Million Equity Financing to Fund Mexican Gold Projects

VANCOUVER, CANADA--(Marketwire - March 11, 2011) - Urastar Energy Inc. (the "Company") (TSX VENTURE:URS)(FRANKFURT:3U3)(WKN:A1JFEE) has closed its non-brokered private placement equity financing in the amount of $5,000,000 by issuance of 12,500,000 common shares and share purchase warrants exerciseable at a price of $0.75 for a period of five years; all subject to a four month hold period. Finder fees of $82,960 and 107,400 finder warrants were paid on certain orders to Canaccord Genuity Corp., Wellington West Capital Inc. and Jennings Capital Inc. The 107 placees include high net worth investors and gold-silver mining funds.

The funds are to be used to develop its recently acquired Gold projects in Sonora Mexico including the former Jabali Gold Mine and the El Antimonio Gold Project. Exploratory programs are currently being developed including drill testing and resource estimation.

Bill Reed, Director and co-founder of Paramount Gold and Silver Corp. (NYSE:PZG) commented, "We are very excited to have quickly raised these significant funds to drill test the numerous targets at our new Mexican Gold and Silver Projects located in the Sierra Madres. Both projects are near existing mines and infrastructure and have significant near term resource potential."

Kyle McClay has tendered his resignation as a director and officer of the Company. The Company has issued 150,000 stock options to consultants exerciseable at a price of $0.75 for a period of 4 years.

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 press release.

Contact Information

  • Urastar Energy Inc.
    John Morita, CFO

    Launch IR
    Matthew Harrington