Goldstar Announces Closing of $1.3 M Private Placement With a Lead Order From Palisades Goldcorp and Debt Settlement
September 04 2020 - 12:29PM
Goldstar Minerals Inc. (“
Goldstar” or the
“
Corporation”) (TSX-V: GDM) is pleased to announce
that it has completed a $1.3 M non-brokered private placement with
a lead order from Palisades Goldcorp Ltd. by issuing 46,666,667
units (the “
Units”) at $0.015 per Unit and
30,000,000 flow-through shares (the “
Flow-Through
Shares”) at $0.02 per Flow-Through Share. Each Unit
consists of one common share in the capital of the Corporation (a
“
Common Share”) and one transferable common share
purchase warrant (each, a “
Warrant”). Each Warrant
entitles the holder thereof to purchase one additional common share
of the Corporation at an exercise price of $0.02 per share until
September 2, 2023. Each Flow-Through Share consists of one common
share of the Corporation issued as a “flow-through share” as
defined in the Income Tax Act (Canada). The Common Shares, the
Warrants and the Flow-Through Shares issued under this placement
are subject to a four month hold period. Two insiders of the
Corporation subscribed for an aggregate of 5,634,000 Units having a
subscription price of $84,510 and an insider subscribed for 500,000
Flow-Through Shares having a subscription price of $10,000.
At closing, in respect of the subscriptions for
Units, the Corporation paid a cash finder’s fee of $34,839.20 and
issued finder’s warrants exercisable to acquire 2,322,613 Units at
a price of $0.015 per Unit until September 2, 2023. In respect of
the subscriptions for Flow-Through Shares, the Corporation issued
1,780,000 common shares and finder’s warrants exercisable to
acquire 1,780,000 common shares at a price of $0.02 per share until
September 2, 2023.
The Corporation will use the proceeds raised
from the issue of Units to retire trade payables, fund an option
payment to be coming due in respect of its Anctil
and Nemenjiche properties located in Quebec, and to cover its
administrative overhead for the balance of this year and fiscal
2021. The proceeds from the issue of the Flow-Through Shares will
be used to incur Canadian exploration expenses on the Anctil and
Nemenjiche properties.
Debt settlement
Goldstar announces that it has completed a share
settlement transaction with an insider of the Corporation pursuant
to which the Corporation issued 25,000,000 common shares at a price
of $0.02 per share in settlement of the debt in the amount of
$500,000 owed to the insider by the Corporation. The price per
share of this debt settlement was amended from the most recent
announced price of $0.015 per share to $0.02 per share and,
as a result, the transaction is not subject to the completion of a
share consolidation by the Company. The debt owed to the insider
did not arise from management fees.
The Corporation also announces that it has
entered into an agreement with a creditor of the Corporation to
settle a debt in the amount of $70,000. Goldstar will issue
3,500,000 units of the Corporation at a price of $0.02 per unit in
settlement of such debt. Each unit will be comprised of one common
share of the Corporation and one purchase warrant, each warrant
entitling its holder to purchase one common share at a price of
$0.05 for a period of three years. This debt settlement is subject
to the approval of the Exchange.
Share consolidation
The Corporation intends to proceed to a
consolidation of its outstanding shares on the basis of one (1)
post-consolidation common share for every ten (10)
pre-consolidation common shares. The Corporation will seek
shareholder approval for the share consolidation at its next annual
meeting to be held in December 2020. All subscribers under the
private placement have agreed to the share consolidation.
For further information, please contact:
David CrevierChairmanTelephone:
514-284-3663dcrevier@goldstarminerals.com
About Palisades Goldcorp Ltd.
Palisades Goldcorp is Canada’s new resource
focused merchant bank. Palisades’ management team has a
demonstrated track record of making money and is backed by many of
the industry’s most notable financiers. With junior resource
equities valued at generational lows, management believes the
sector is on the cusp of a major bull market move. Palisades is
positioning itself with significant stakes in undervalued companies
and assets with the goal of generating superior returns.
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. This news release may contain
forward-looking statements. These statements are based on current
expectations and assumptions that are subject to risks and
uncertainties. Actual results could differ materially because of
factors discussed in the management discussion and analysis section
of our interim and most recent annual financial statement or other
reports and filings with the TSX Venture Exchange and applicable
Canadian securities regulations. We do not assume any obligation to
update any forward-looking statements, except as required by
applicable laws.
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