To: Miner who wrote (7107 ) 3/11/2002 8:26:49 AM From: Al Collard Read Replies (1) | Respond to of 11802 RMX-v ...in the news:Redstar granted interest option in Rubicon properties Mon 11 Mar 2002 Mr. Steve Todoruk of Redstar Resources reports REDSTAR OPTIONS WEST RED LAKE PROPERTY FROM RUBICON Redstar Resources and Rubicon Minerals have signed a letter agreement giving the company the option to earn up to a 70-per-cent interest in four of Rubicon's properties in the western end of the Red Lake gold camp, Ont. The West Red Lake properties consist of 226 claim units located in prospective trends between 15 and 30 kilometres west of Goldcorp Inc.'s new Red Lake mine in Northwestern Ontario. To earn a 51-per-cent interest in the West Red Lake properties, the company must issue 500,000 postconsolidated shares and make cash payments totalling $135,000 to Rubicon, and carry out $2,575,000 in exploration within four years. The company will also be responsible for making cash payments to the underlying property vendors on the three properties, of which $36,000 is firm in the first year. A 2-per-cent net smelter royalty (NSR) is held by the underlying vendors on the Pipestone South, Pipestone North and Wolf properties. On each property, a 1-per-cent NSR can be repurchased from the vendor. Nominal advance royalty payments will also be due to the vendors. On the Baird property, no NSR is held and only nominal advance royalty payments are due. The company will have a one-time 60-day period to elect whether to exercise an option to earn an additional 9-per-cent interest by spending an additional $7.5-million in work on the property over the four years following the election. The company will have a second option to increase its interest in the property by a further 10-per-cent by agreeing to pay for all costs on the property to finance a positive and bankable feasibility study, and arranging for all project financing for a mine or mines. The second option is subject to approval by Rubicon. The company is also arranging a $650,000 private placement, subject to shareholder approval and regulatory acceptance of a proposed share consolidation to be voted on at a special meeting of the company's shareholders on April 11, 2002. The private placement will consist of up to 5.5 million units to raise gross proceeds of $650,000. Up to 3.75 million units will be flow-through eligible. Each unit will consist of one postconsolidated common share and one full share purchase warrant exercisable for two years. The price of the units will depend upon the consolidation ratio that the shareholders and directors approve. It is intended that the units will be priced at the discounted market price, after taking into account the share consolidation, as set out in the policies of the Canadian Venture Exchange. Each warrant will be exercisable into one postconsolidated common share at an exercise price determined in accordance with CDNX policies. Finder's fees, payable in shares or cash, may be made to registered dealers who make introductions to placees. A majority of the net proceeds of the $650,000 from the financing will be used for exploration on the West Red Lake properties. The company is also proceeding with a special shareholders meeting on April 11, 2002, at which time proposed share consolidations of 4:1, 6:1 and 8:1 will be voted upon, as well as a name change to Redstar Gold Corp. The letter agreement with Rubicon is conditional upon the company closing its $650,000 private placement financing which must be completed within 30 days of CDNX approval of the company's share consolidation. Redstar is pleased to form this new partnership with Rubicon who is the largest landowner in the Red Lake gold camp. Rubicon is currently in a joint venture partnership with Anglogold, whereby Anglogold must spend $5.1-million over the next five years. As well, Rubicon is earning a 60-per-cent interest in another joint venture partnership with Golden Tag Resources Inc. In early February, Rubicon commenced a major diamond drilling on the separate joint ventures. Historically, over 24 million ounces of gold have been produced in the prolific Red Lake gold camp. Current production takes place from Goldcorp's new Red Lake mine and Placer Dome's nearby Campbell mine.