Vanstar Mining Resources Inc.

May 08, 2009 09:56 ET

Vanstar Mining Resources Inc. Completes $756,700 "Initial Public Offering"

LA PRAIRIE, QUEBEC--(Marketwire - May 8, 2009) - This release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or for dissemination in the United States.

Vanstar Mining Resources Inc. (TSX VENTURE:VSR) is pleased to announce that it has completed today its previously-announced initial public offering of 262 A units ("A Units") at a price of $1,050 per unit and 963 B units ("B Units") at a price of $500 per unit, for total gross proceeds of $756,700. 63 A units were issued following the exercise of an over-allotment option exercised by Northern Securities Inc., who acted as the sole agent for the initial public offering. Vanstar' s common shares will commence trading today on the TSX Venture Exchange under the symbol "VSR".

Each A Unit is comprised of 5,600 "flow-through" common shares at a price of $0.15 per share and 2,100 common shares at a price of $0.10 per share. Each B Unit is comprised of 5,000 common shares at a price of $0.10 per share and 5,000 common share purchase warrants. Each common share purchase warrant entitles its holder to purchase one additional common share of Vanstar at a price of $0.13 per share for a period of two years.

In connection with Vanstar's initial public offering, Vanstar paid Northern Securities Inc. a cash commission of $60,528 and issued a broker's warrant to Northern Securities Inc., entitling it to purchase up to 26 A Units at a price of $1,050 per unit and 96 B Units at a price of $500 per unit, for a period of 24 months following the closing of Vanstar's initial public offering.

The net proceeds from the initial public offering will be used by Vanstar for exploration work on its Patica property, and for working capital and general corporate purposes.

Following the closing of the initial public offering, there are 10,132,400 common shares and 4,815,000 common share purchase warrants issued and outstanding of Vanstar.

Vanstar's common shares have not been registered under the United States Securities Act of 1933, as amended, and subject to certain exceptions, may not be offered or sold within the United States, or to, or for the account or benefit of, U.S. persons.

Neither TSX Ventures 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

  • Vanstar Mining Resources Inc.
    Guy Morissette
    Vanstar Mining Resources Inc.
    Francois Marcotte
    CFO & Investor relations