keep an eye on this one too GOLD in de hills
Southern Star changes symbol to SSR on Dec. 31
Southern Star Resources Inc YSO
Shares issued 18,089,107 Dec 30 close $0.27
Mon 30 Dec 2002 News Release
Mr. John Tait reports
SOUTHERN STAR MOVES TO TIER 2 UNDER SYMPBOL SSR, COMPLETES $5 ...
Southern Star Resources expects to commence trading on Tier 2 of the TSX
Venture Exchange under the symbol "SSR" at the opening of business on Dec.
31, 2002. In addition, the company has appointed David Constable to its
board of directors. Mr. Constable has an honours BSc geology degree from
Mount Allison University and an MBA from Laurentian University. Presently,
Mr. Constable, who is a professional engineer, is vice-president investor
relations and corporate affairs with FNX Mining Company Inc., a position he
accepted after his former employer, Normandy Mining Limited, was acquired
by Newmont Mining in the spring of 2002. The entire board consists of John
Tait, Chris Irwin, Clark Tatton and David Constable.
The company also has closed in escrow a non-brokered private placement to
raise gross proceeds of $550,000. Upon release of the escrow (expected Dec.
31, 2002), the company will issue 5.5 million common shares and 2.75
million share purchase warrants. A total of 4.4 million of the common
shares are flow-through shares. Each full share purchase warrant entitles
the holder to acquire one additional share at a price of 15 cents until
Dec. 31, 2003. The proceeds are being used to start the company's full
sequence exploration program on the Gold Eagle Lake mine property, located
in Red Lake, Ont., and for working capital. In exchange for backing the
financing, Northfield Capital Corporation (TSX-V: YFD.A) will receive
350,000 common share purchase warrants exercisable at 15 cents per share
until Dec. 31, 2004.
Southern Star also has received all necessary approvals to issue one
million common shares to complete the first option payment required to earn
a 50-per-cent interest in the Gold Eagle Mine property from its 100 per
cent owner, Exall Resources Limited (TSE: EXL). To earn its 50-per-cent
interest, Southern Star must make cash payments totalling $160,000 and
issue three million common shares over a three-year period. In addition,
Southern Star has agreed to incur exploration expenditures totalling
$2-million over a three-year period. Southern Star will initiate a
full-sequence exploration program on the property immediately upon receipt
of exchange approvals and execution of definitive documents. The property
consists of 35 patented claims totalling 726.1 hectares (1,793.5 acres) in
the heart of the Red Lake camp. The Gold Eagle mine produced approximately
40,000 ounces of gold from the Gold Eagle vein system using a shaft and
winze on eight levels to a depth of 305 metres. The mine operated from 1937
to 1941.
Since operations ceased, no significant exploration program has been
undertaken on the property. With large formerly producing mines on two
sides of the property near the northern boundary, the property is
exceptionally well located. For example, the McKenzie Red Lake mine on Gold
Eagle's northern boundary produced 651,156 ounces and the Cochenour Willans
mine on the eastern boundary produced 1.24 million ounces at a grade of
18.5 grams of gold per tonne. There are no royalties on the subject
property. In connection with entering into the option, the company is also
issuing a finder's fee of 125,000 common shares and 250,000 share purchase
warrants exercisable at 15 cents until Dec. 31, 2004. The issue of all of
the securities in connection with the acquisition of the option on the
property will occur concurrently with the release from the escrow of the
private placement. Upon the release from escrow the company will have
issued 18,089,107 shares with a total of 5.35 million convertible
securities for a fully diluted total of 23,439,107.
The company further announces it has closed in escrow the issue of 315,000
common shares to two arm's-length creditors to settle debts of $31,500. The
escrow will be released concurrently with release of the escrow on the
private placement.
All of the securities to be issued in connection with the private
placement, the property option and the debt settlement have a hold period
expiring four months and one day after the date of issue.
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