Estrella Appoints Jason Weber as President & CEO and Announces $500,000 Financing
April 29 2014 - 3:30PM
Marketwired
Estrella Appoints Jason Weber as President & CEO and Announces
$500,000 Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 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.
Financing Terms
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.
Project Plans
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:
Common Shares |
41,650,304 |
|
Options |
2,945,000 |
Average exercise price: $0.29 |
Warrants |
18,120,000 |
Average exercise price: $0.17 |
Compensation Warrants |
565,000 |
Average exercise price: $0.15 |
Fully Diluted: |
63,280,304 |
|
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.
www.estrellagold.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. 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.
Estrella Gold CorporationJason WeberPresident and CEO(604)
687-3520Estrella Gold CorporationSandrine LamShareholder
Communications(604) 687-3520www.estrellagold.com
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