andy look up this one for me will you -- you the gold expert it seems
this group done some wonders on fort know adn DY too
take a peek let me know thx
Southern Star closes $42,000 financing
Southern Star Resources Inc YSO
Shares issued 9,149,107 Oct 25 close $0.10
Fri 25 Oct 2002 News Release
Mr. John Tait reports
SOUTHERN STAR COMPLETES SECOND TRANCHE OF PRIVATE PLACEMENT A ...
Southern Star Resources, further to its report in Stockwatch on Aug. 1,
2002, regarding a proposed private placement of up to two million units of
the company, it has closed the remaining 840,000 units at a price of five
cents per unit for total proceeds of $42,000. Each unit comprises one
common share and one common share purchase warrant, each warrant entitles
the holder thereof to acquire a common share for a period of one year from
the date of issuance, exercisable at a price of 10 cents per share. The
proceeds will be used by the company for general working capital purposes.
All of the securities issued in the private placement have a hold period
expiring one year after the date of issue.
The company has also proposed to complete a non-brokered private placement
to raise up to $500,000. The company proposes issuing up to 500,000 units
at a price of $1 per unit. Each unit will consist of 10 common shares and
five share purchase warrants. Each full share purchase warrant will entitle
the holder to acquire one additional share at a price of 15 cents for a
period of 12 months following closing. Eight common shares per unit will be
flow-through shares. The use of proceeds is 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. Northfield Capital
Corporation has agreed to backstop the financing for as much as $350,000.
In exchange for backing the financing, Northfield will receive 350,000
common share purchase warrants exercisable at 12 cents for a two-year
period.
Southern Star has entered into an option agreement to acquire 50 per cent
of the Gold Eagle mine property from its 100-per-cent owner, Exall
Resources Limited. The property consists of 35 patented claims totalling
726.1 hectares (1,793.5 acres) in the heart of the Red Lake camp. The 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
formerly large producing mines on two sides of the property, and a recently
announced new discovery 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 per tonne gold. There are no royalties on the property.
Completion of the acquisition is subject to receipt of all required
regulatory approvals.
The company has entered into debt settlement agreements with several of its
creditors. Pending approval of the TSX Venture Exchange, the company seeks
to settle its debt with John Tait by issuing 340,000 shares at a price of
10 cents per share, settling $34,000 in debt owed to Mr. Tait by the
company. Mr. Tait is the president and a director of the company, making
this a non-arm's-length transaction. The debt is pursuant to management
fees. The company has also entered into agreements with two other
non-arm's-length parties to settle debts totalling $26,500 at a price of 10
cents per share for consulting and legal services rendered.
(c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com |
