Gold Star Signs LOI on West African Oil Concession and Arranges Financing
March 09 2009 - 5:00AM
Marketwired
Gold Star Resources Corp. (the "Company") (TSX-V: GXX) is pleased
to announce the signing of a Letter of Intent ("LOI") with Bengal
Bight Ghana Limited ("Bengal") to acquire a 100% interest in the
hydrocarbon rights of Bengal's Tiampoum Mining Concession (the
"Concession"). The Tiampoum Mining Concession, issued by the
Ministry of Mines and Energy in Cote d'Ivoire, covers an area of
approximately 1,000 sq. kms located in the District of d'Aboisso,
southeastern Cote d'Ivoire, near the border with Ghana. Bengal
holds the concession as part of an underlying option agreement from
Enchi-Proci CI, a legal corporation doing business under the laws
of Cote d'Ivoire.
The southern half of the Concession area covers much of the
onshore extent of the Tano-Bassam Basin, close to its extension
into southwestern Ghana. Oil seeps and tar mats are widely known
through this area, and have been visited by the Gold Star technical
team. Offshore in both Ivorian and Ghanian waters, the Tano-Bassam
basin has seen a number of material oil and gas developments in
recent years. Recently, Tullow Oil Plc announced that it was
proceeding with the offshore development of the Jubilee Field in
the Ghanaian sector (see Tullow Oil news release dated January 12,
2009), from which it expects production wells to flow 20,000 bopd,
with an ultimate upside potential of 1.8 billion barrels for the
field. Following its acquisition of the Devon Energy assets in
Ivorian waters adjoining those of Tullow in Ghana, Afren Oil now
operates several material oil and gas fields, including the Kudu,
Eland and Ibex, which lie immediately offshore and directly
down-dip from Tiampoum (see Afren website).
Consideration for the acquisition of Tiampoum from Bengal is as
follows:
1) Gold Star will pay $30,000.00 USD (non-refundable) upon the
signing of this LOI to Bengal;
2) Gold Star will pay up to $150,000 USD to Enchi-Proci to
acquire the License outright and simultaneously pay $70,000.00 USD
upon the License buyout to Bengal;
3) Gold Star will issue 2,000,000 common shares, and 2,000,000
warrants exercisable at a price of $0.20 for a period of two years
from the date of issue to Bengal;
4) Bengal will receive further compensation based on these key
production milestones:
i) $100,000.00 USD at 10 million barrels
ii) $100,000.00 USD at 15 million barrels
iii) $100,000.00 USD at 20 million barrels.
Issuance of the shares and warrants are subject to the approval
of the TSX Venture Exchange (the "Exchange"). All securities issued
will be subject to a four month and one day hold period from the
date of issue pursuant to the policies of the British Columbia
Securities Commission. Finders fees may be payable in cash and or
securities up to the maximum allowable by the TSX-V Exchange
policy.
In addition, the Company is pleased to announce it has arranged,
subject to the approval of the TSX Venture Exchange, a non-brokered
private placement of up to 10,000,000 units at a price of $0.15 per
unit for total gross proceeds of up to $1,500,000. Each unit will
consist of one common share of the Company and one share purchase
warrant. Each warrant will entitle the holder to purchase one
additional common share of the Company at a price of $0.25 per
share for two years from the date of closing.
Proceeds of the private placement will be used for general
working capital. Finders fees may be payable in cash and or
securities up to the maximum allowable by the TSX-V Exchange
policy.
On Behalf of the Board,
"Patrick Morris"
Patrick Morris, President and CEO
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information, contact: Patrick Morris President and
CEO of the Company pm@goldstarresources.com Telephone: (604)
641-4450 Facsimile: (604) 669-9335
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