Star Minerals Group Ltd. Signs MOU: Looks to Generate Cash Flow From Montana Gold Operation
April 28 2014 - 4:24PM
Marketwired
Star Minerals Group Ltd. Signs MOU: Looks to Generate Cash Flow
From Montana Gold Operation
SASKATOON, SASKATCHEWAN--(Marketwired - Apr 28, 2014) - Star
Minerals Group Ltd. ("Star" or the "Company") (CSE:SUV) is pleased
to announce the Company has signed a Memorandum of Understanding
("MOU") with a private group ("Lessor") to lease certain mineral
claims and assume management of the Casey-Snyder placer gold
operation near Drummond, Montana.
Under the terms of the MOU, Star will form a US subsidiary
company ("Star US") that, upon completion of certain due diligence
related to title and permitting, and the execution of a definitive
agreement, will:
- Lease the Casey-Snyder mineral claims for a period of 10 years,
or as long as commercial production is maintained.
- Pay the Lessor a 15% royalty on all gold produced from the
Casey-Snyder operation with a minimum royalty payable of US$50,000.
The royalty can be paid in cash or gold, at the Lessor's option.
Star US will advance US$25,000 of the initial royalty payment on
signing the lease agreement.
- Lease additional mineral claims in the vicinity of the
Casey-Snyder property for US$10,000 per annum, with lease payments
escalating annually at a mutually agreed upon rate, until gold
production is achieved on the claims, after which payment will
revert to the same 15% royalty arrangement applicable to the
Casey-Snyder property.
- Rent suitable existing operating equipment from the
Lessor.
- Provide sufficient start-up working capital to recommence
operations.
It is expected that the remaining due diligence will be
completed shortly and a definitive agreement signed in the next few
weeks.
The Casey-Snyder property is situated in an historic gold mining
area. Since the 1890s, both hard rock and placer gold mining
operations have existed in the immediate area of the Casey-Snyder
claims, and since the 1980s, small-scale placer gold mining has
taken place on the Casey-Snyder claims. Star management feels that
there is excellent potential to upgrade the current operations to
the point where they can generate significant cash flow for the
Company. The property also offers excellent exploration potential
to locate an in situ source of the gold.
Jim Engdahl states, "Star's core focus of strategic metals is
strengthened through the acquisition of the Casey-Snyder placer
gold operation. The operation is a strategic asset which is
intended to produce short and long term cash flow to the company to
further its core exploration assets. This will enable further
progress on acquiring a diversified strategic metals portfolio
while increasing shareholder value in a continuing volatile market
environment. Further, Star is pleased to have secured experienced,
dedicated personnel in Montana to ensure short and long term
maximization of the cash flow potential of this low capital cost
asset."
About Star Minerals Group Ltd.
Star is a Saskatoon-based, diversified exploration stage
company, with a primary focus on strategic technology metals, and
its advanced joint venture rare earth project Hoidas Lake. To
advance exploration, the Company has leveraged the strength and
experience of its management, board of directors and advisors to
identify and acquire strategic investments that have the capability
to generate cash flow with low capital expenditure costs.
The Company entered into a joint venture in an advanced rare
earth project in Saskatchewan - Hoidas Lake. Star also holds a
strategic gold exploration property in the Seabee gold mining
district, diamond properties in the Fort a la Corne region as well
as base metal and uranium properties.
STAR TRADES ON THE CSE UNDER THE SYMBOL "SUV".
For more information, please visit our website at
www.starminerals.ca.
Forward-Looking Statements
This news release contains certain statements which constitute
forward-looking statements or information ("forward-looking
statements. Such forward-looking statements are subject to numerous
risks and uncertainties, some of which are beyond Star's control,
including the impact of general economic conditions, industry
conditions, volatility of commodity prices, currency fluctuations,
competition from other industry participants, stock market
volatility and the ability to access sufficient capital from
internal and external sources. Although Star believes that the
expectations in its forward-looking statements are reasonable, they
are based on factors and assumptions concerning future events which
may prove to be inaccurate. Those factors and assumptions are based
upon currently available information. Such statements are subject
to known and unknown risks, uncertainties and other factors that
could influence actual results or events and cause actual results
or events to differ materially from those stated, anticipated or
implied in the forward looking information. As such, readers are
cautioned not to place undue reliance on the forward looking
information, as no assurance can be provided as to future results,
levels of activity or achievements. Other factors that could
materially affect such forward-looking statements are described in
the risk factors in the most recent management's discussion and
analysis that is available on the Company's profile on SEDAR at
www.sedar.com. Readers are cautioned that the foregoing list of
factors is not exhaustive. The forward-looking statements contained
in this document are made as of the date of this document and,
except as required by applicable law, Star does not undertake any
obligation to publicly update or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise. This cautionary statement expressly
qualifies the forward-looking statements contained in this
document.
Star Minerals Group Ltd.Jim
Engdahl306-664-3828306-244-0042info@starminerals.cawww.starminerals.ca
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