WASHINGTON, June 15, 2006 (PRIMEZONE) -- Novastar Resources Ltd. (OTCBB:NVAS) has today announced that after the close of business yesterday (June 14, 2006), Novastar ("the Company") filed a registration statement on Form S-4 with the Securities and Exchange Commission relating to the registration of the Company's securities that will be issued to security holders of Thorium Power, Inc. in connection with the proposed business combination between Novastar Resources and Thorium Power, Inc.
The filing of a registration statement is required by, and one of the conditions precedent to, the Agreement and Plan of Merger, dated February 14, 2006, as amended, that was entered into between Novastar, Thorium Power and TP Acquisition Corp., a subsidiary of Novastar formed solely to act a vehicle for effecting the merger. The consummation of the transactions contemplated by the merger agreement is conditioned on, among other things, the registration statement becoming effective.
Seth Grae, the Chief Executive Officer of Novastar, stated that, "The filing of the registration statement with the Securities and Exchange Commission demonstrates our commitment to consummating the merger with Thorium Power and our advancement toward that goal. We still expect that we will be able to consummate the merger before the end of this year."
On February 14, 2006 Novastar Resources signed a definitive merger agreement with Thorium Power, Inc. to combine the two companies. Shareholders of Thorium Power, Inc. recently approved the merger with Novastar Resources. The name of the Company will change to Thorium Power Ltd. and a new trading symbol will be requested.
About Novastar Resources
Novastar Resources is a publicly traded company within the commercial mining sector and is a commercial mining firm engaged in the exploration of thorium, a naturally occurring metal that can be used to provide nuclear energy, with non-proliferation, waste and economic advantages, in comparison to standard uranium fuels. Novastar Resources' stock is traded and quoted on the OTC Bulletin Board under the symbol "NVAS.OB". Further information is available on Novastar Resources' website at www.novastarresources.com.
About Thorium Power
Thorium Power was founded in 1992 to develop technology invented by Dr. Alvin Radkowsky, the first chief scientist of the U.S. Naval Reactors program under Admiral H.G. Rickover from 1950-1972 and head of the design team of the first commercial nuclear power plant in Shippingport, Pennsylvania. Thorium Power was formed to develop and deploy nuclear fuel designs developed by Dr. Radkowsky to stop the production of weapons suitable plutonium and eliminate existing plutonium stockpiles. Thorium Power has been collaborating with nuclear scientists and engineers at Russia's prestigious Kurchatov Institute since 1994. For more information, please visit www.thoriumpower.com.
DISCLAIMER
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, statements regarding benefits of the proposed merger and other forward-looking terminology such as "may", "expects", "believes", "anticipates", "intends", "expects", "projects" or similar terms, variations of such terms or the negative of such terms. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. These risks, as well as other risks associated with the merger, will be more fully discussed in any joint proxy statement or prospectus or other relevant document filed with the Securities and Exchange Commission in connection with the proposed merger. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein.