Chepica Project Update
November 19 2008 - 2:10PM
Marketwired
Polar Star Mining Corporation ("Polar Star") (TSX VENTURE: POS) has
re-negotiated its option to purchase agreement on the Chepica
mining property and mill (the "Chepica Project") whereby Polar Star
can now take operational control of the project and has three years
to the pay the balance of the purchase price. Polar Star expects to
complete documentation and closing of this restructured deal during
December 2008. The modified agreement terms are: 1) Polar Star will
purchase an additional 5% equity of the Chepica Project for CP$150
million (approximately US$236,000 under today's current exchange
rates); 2) the remaining balance of the previously agreed purchase
price will be increased by 20% at closing; and, 3) Polar Star has
the option to pay this balance in part or in full at any time from
the profits of any mining and milling operations which may occur
over the next three years. There are no minimum cash amounts that
are required to be paid during the three year period and Polar Star
will be the sole operator. Closing will be subject to receipt of
the usual regulatory approvals.
On November 14, 2008, as part of their on-going sampling and
testing of operations on the Chepica No2 Vein, the current
owner/operators of the Chepica Project shipped 22 tonnes of test
material from their onsite flotation mill to the Empresa Nacional
de Mineria, Chile ("ENAMI") smelter at Valpariso. Their planned
production rate of 200 tonnes per day is expected to be reached by
the second quarter of 2009.
Polar Star's initial 5,000 metre drill program at the Chepica
Project is scheduled to be completed on or about November 30,
2008.
There is no current NI 43-101 compliant resource report on the
Chepica Project however SRK International will be incorporating
these results in a National Instrument 43-101 compliant report
which is expected to be delivered in the first quarter of 2009.
Qualified Person
Mr. Terence Walker, M.Sc., P.Geo., is the qualified person
within the meaning of National Instrument 43-101. Mr. Walker has
reviewed the contents of this news release.
About Polar Star
Polar Star was created to acquire advanced stage exploration
properties focusing on gold, copper-gold, and uranium. The
Corporation's material assets include 20 projects in Chile, which
are 100% owned and cover approximately 146,112 hectares. Polar Star
announced the closing of a $5 million private placement on July 8,
2008 during which HudBay Minerals Inc. acquired 3,860,605 Units
(approximately 9.8% of the now outstanding shares of the
Company).
Forward-Looking Statements
The statements made in this news release may contain
forward-looking statements that may involve a number of risks and
uncertainties. Actual events or results could differ materially
from the Company's expectations and projections. Accordingly,
readers should not place undue reliance on forward-looking
statements. For a more detailed discussion of such risks and other
factors, refer to Polar Star Mining Corporation's filings with
Canadian securities regulators available on www.sedar.com or the
Company's website at www.polarstarmining.com.
Share Capitalization:
Shares Outstanding: 39,241,098 as at November 18, 2008.
Business Television Feature:
Polar Star was selected and featured on Business Television in
early March 2008. If you missed the show, please click on the link
below to watch the full-feature.
http://www.b-tv.com/i/videos/PolarStar.wmv
The Toronto Stock Exchange Venture has not reviewed and does not
accept responsibility for the adequacy or accuracy of this release
and the information contained herein.
Contacts: Polar Star Mining Corporation Douglas Willock
President and CEO (416) 368-3496 Email: info@polarstarmining.com
Website: www.polarstarmining.com
Polar Star Mining (Tier2) (TSXV:POS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Polar Star Mining (Tier2) (TSXV:POS)
Historical Stock Chart
From Jul 2023 to Jul 2024