TriStar Announces $3 Million Private Placement
January 16 2014 - 1:23PM
Business Wire
TriStar Gold Inc. (the “Company” or “TriStar”) announces its
plan to raise up to $3 million by way of a non-brokered private
placement. The proceeds will be used to conduct an infill drill
program at the Company’s Castelo de Sonhos Project (“CDS”) in Para
state, Brazil. The drill program is designed to provide enough
information to generate a resource estimate which will be used to
complete a technical report. The filing of the technical report
with the Brazilian mining authorities (the “DNPM”), and subsequent
approval by the DNPM, will allow the CDS exploration license to be
converted to an exploitation license. Certain shareholders and
insiders have indicated that they will participate in the
placement.
Since commencing exploration at Castelo de Sonhos in 2011,
TriStar has collected 7,458 soil samples that outline a gold soil
anomaly, varying in width between 100-800 meters along a
strike-length of 16km. This soil anomaly expresses the West, East
and South-East flanks of a mineralized basin of 10 by 6-7 km. A
total of more than 12,000m has been drilled in 93 Diamond Drill
holes.
At Esperanca South, one of the strongest anomalies, 42 of 52
drill-holes (81%) intercepted mineralization along a strike length
of 3.2 km, inside a 5 km long conglomerate hosted gold soil anomaly
with an average grade of 2.41g/t Au (cut-off at 1g/t Au) over an
average width of 7m. At the 2,500m long Esperanca Center, 34 holes
were drilled as well as a few holes at Esperanca West and East. In
all instances mineralization was intercepted. The remainder of the
16 km outcropping conglomerate/gold soil anomaly and the down-dip
extension throughout the rest of the basin has still been untested.
Future drilling may prove significant additional potential
throughout this basin. The geological setting bears similarities
to Jacobina and Tarkwa and has a favorable infrastructure.
Private Placement:
The private placement will consist of up to 30 million Units
(“Units”) of the Company at the price of $0.10 per Unit. Each Unit
will consist of one share of TriStar and one share purchase
warrant. Each share purchase Warrant will entitle the holder to
purchase one additional share of TriStar at the price of $0.13 per
share for a period of 18 months. The placement is anticipated to
close on February 6, 2014.
Finders’ fees may be paid in connection with the private
placement.
Certain directors and officers of the Company may acquire Units
under the private placement. Any such participation would be
considered to be a related party transaction as defined under
Multilateral Instrument 61-101. The transaction will be exempt from
the formal valuation and minority shareholder approval requirements
of MI 61-101 as neither the fair market value of any securities
issued to, or the consideration paid by, such persons will exceed
25 per cent of the Company's market capitalization. This private
placement is subject to approval of the TSX Venture Exchange (the
“Exchange”).
About TriStar:
TriStar Gold is a gold exploration company focused on
high-potential properties in Brazil. In addition to Castelo de
Sonhos, TriStar holds another exploration project in the Tapajós
district known as the Bom Jardim Property. The Company’s shares are
listed on the TSX Venture Exchange under the symbol TSG-V. Further
information is available at www.Tristarau.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. No stock exchange, securities commission
or other regulatory authority has approved or disapproved the
information contained herein.
Forward-Looking Statements
Certain statements contained in this press release may
constitute forward-looking statements under Canadian securities
legislation which are not historical facts and are made pursuant to
the "safe harbour" provisions under the United States Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are based upon the Company's reasonable expectations and
business plan at the date hereof, which are subject to change
depending on economic, political and competitive circumstances and
contingencies. Readers are cautioned that such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause a change in such assumptions and the actual
outcomes and estimates to be materially different from those
estimated or anticipated future results, achievements or position
expressed or implied by those forward-looking statements. Risks,
uncertainties and other factors that could cause the Company's
plans to change include changes in demand for and price of gold and
other commodities (such as fuel and electricity) and currencies;
changes or disruptions in the securities markets; legislative,
political or economic developments in Brazil; the need to obtain
permits and comply with laws and regulations and other regulatory
requirements; the possibility that actual results of work may
differ from projections/expectations or may not realize the
perceived potential of the company’s projects; risks of accidents,
equipment breakdowns and labour disputes or other unanticipated
difficulties or interruptions; the possibility of cost overruns or
unanticipated expenses in development programs; operating or
technical difficulties in connection with exploration, mining or
development activities; the speculative nature of gold exploration
and development, including the risks of diminishing quantities of
grades of reserves and resources; and the risks involved in the
exploration, development and mining business. The Company disclaims
any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise.
TriStar Gold Inc.Mark Jones III, 281-579-3400Chairman and
CEOinfo@tristarau.com
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