TORONTO, ONTARIO--(Marketwired - May 2, 2016) - Further to its news released dated April 11 and 12, 2016, Canstar Resources Inc. ("Canstar" or the "Corporation") (TSX VENTURE:ROX) is pleased to announce the completion of its previously announced non-brokered private placement for gross proceeds of $182,412 (the "Offering") through the sale of 1,158,334 flow-through units (the "FT Units") and 1,881,866 hard-dollar units (the "HD Units") at a price of $0.06 per FT Unit and HD Unit.
Each FT Unit consisted of one common share issued on a flow-through basis and one common share purchase warrant (a "Warrant") and each HD Unit consisted of one common share and one Warrant. Each Warrant shall entitle the holder to purchase one common share of the Corporation for a period of 24 months after closing at a price of $0.10 in the first year after closing, and $0.175 in the second year after closing if the holder so elects. If the closing price on the TSXV of the common shares equals or exceeds $0.175 per share in the first year after closing, or $0.25 per share in the second year after closing, for a period of 20 consecutive trading days, the Corporation has the right to accelerate the expiry date of the Warrants. To exercise this right, within 30 days of the occurrence of an acceleration event, the Corporation must give written notice to the holder by ordinary prepaid mail, in which case the expiry date of the Warrants is accelerated to the date that is thirty (30) calendar days from the date of mailing at 4:00 pm Toronto time.
In connection with the Offering, a finder's fee (the "Finder's Fee") was paid to certain eligible finders in an amount equal to 5% of gross proceeds and 8% of the number of FT Units and/or HD Units sold pursuant of the Offering. The Finder's Fee was comprised of $6,811 in cash and an aggregate of 181,626 non-transferrable share purchase warrants ("Finder's Warrants"). Each Finder's Warrant, which has an expiry date of May 2, 2018, entitles the holder to acquire one HD Unit at an exercise price of $0.06 per HD Unit.
All securities issued pursuant to the Offering are subject to a statutory four month and one day hold period expiring on September 3, 2016.
On behalf of the Board of Directors,
Danniel J. Oosterman, P.Geo, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this News Release.