Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : first star energy FST on the ASE -- Ignore unavailable to you. Want to Upgrade?

To: Werlick who wrote (649)	1/7/1999 5:34:00 PM
From: Ed Pakstas	Read Replies (1) \| Respond to of 754

NEWS RELEASE First Star closes financing, arranges another, makes board changes First Star Energy Ltd FST Shares issued 24,016,195 Jan 6 close $0.40 Thu 7 Jan 99 News Release Mr. John Squarek reports First Star has closed the private placement of 3,194,444 flow-through shares at 36 cents per share for total proceeds of $1,150,000. The proceeds from the flow-through share issue are to be expended in 1999 on First Star's high impact exploration plays, including: 1. a Mannville exploration well at Strachan to develop the upper zones logged but not tested in the 1998 Swan Hills discovery well; 2. a 2,300 metre exploration well at Ferrybank in central Alberta (Zeta), on a Devonian D-3 reef oil play with the potential for over 100 million barrels of oil; 3. two other significant Devonian reef plays that are currently being developed. In addition, First Star is seeking approval from the Alberta Stock Exchange to complete a further private placement of up to 5,000,000 units at 28 cents per unit ($1,400,000). Each unit will be comprised of one Class A share and 0.36 of a share purchase warrant. The price of each share forming part of a unit will be 27.64 cents and the price of each 0.36 warrant shall be .36 cents. The warrants will be exercisable at 30 cents until May 31, 1999, and if fully exercised would provide $540,000 to First Star. The subscribers are expected to include Tetrarch Capital Corporation (a 100 per cent investment corporation of James A. Malcolm) and other subscribers who are not yet known and will be determined during the course of the private placement. Mr. Malcolm has agreed to become a director of First Star. The expected date of closing for the private placement is in February 1999. First Star has agreed that $1,325,000 of the proceeds from the proposed private placement will be used to purchase one-half of the working interests that First Star has agreed to purchase from a joint venture partner in the Strachan area. First Star also proposes to assign to Tetrarch Capital (or a group put together by Tetrarch Capital) First Star's right to acquire the other half these working interests. Following the acquisition of such interests by Tetrarch Capital it is proposed that First Star will have a call right to purchase such interests for four months after the 2-22-38-9W5 well is placed on production, for $425,000 and 4,375,000 shares. If the option is not exercised, the Tetrarch group will have a put right to require First Star to purchase such interests for a limited period of time and for consideration that may include cash and/or securities of First Star. Robert J. Iverach, Q.C. has resigned as chairman of the board of directors but will remain as a director of the company. Mr. Malcolm has joined the board of directors as chairman effective Jan. 5, 1999. Mr. Malcolm was the founder and president of AccuMap EnerData Corporation. AccuMap was merged with QC Data in March 1998. Robyn Lore has joined the management team as a business consultant effective Jan. 15, 1999. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com