Star Minerals Group Ltd. Announces Definitive Agreement With Shane Resources Ltd.
Saskatoon, Saskatchewan - December 17, 2013 - Star Minerals Group Ltd. ("Star
" or the "Company
") (TSX.V: SUV) is pleased to announce that it has entered into an asset purchase agreement (the "Purchase and Sale Agreement
") with Shane Resources Ltd. ("Shane
") (NEX: SEI.H), whereby Star agreed to purchase the Don's Lake, Munroe and Brownell claims held by Shane, as well as a net smelter royalty granted by Golden Band Resources Inc. (the "Purchased Assets
"), subject to certain conditions (the "Transaction
"). The Transaction is considered to be a Non-Arm's Length transaction pursuant to the policies of the TSX Venture Exchange by virtue of Mr. Kozuska being a director of both companies.
Under the terms of the Purchase and Sale Agreement, Star has agreed to purchase the Purchased Assets for an aggregate consideration of $655,000, payable as to $55,000 in cash and the balance in common shares of Star (the "Consideration Shares
"). The deemed price of the Consideration Shares will be $0.05 in accordance with the terms of the Purchase and Sale Agreement, representing the minimum allowable issuance price of the Consideration Shares as prescribed by the policies of the TSX Venture Exchange as determined at the date of the Purchase and Sale Agreement, resulting in an aggregate of 12,000,000 Consideration Shares to be issued.
The Consideration Shares will be subject to a statutory hold period expiring four months after the date of their issuance.
The closing of the Transaction is subject to customary conditions precedent and closing conditions, including (i) Shane shareholder approval; (ii) in respect of the Don's Lake property, Claude Resources Inc. having waived its right of first refusal or allowed it to lapse; and (iii) applicable regulatory approvals, including the approval of the TSX Venture Exchange. About Star Minerals Group Ltd.
Star is a Canadian based entity focused on the strategic acquisition and development of resource properties on a worldwide basis.
For more information, please visit our website at www.starminerals.ca
. For further information:
Star Minerals Group Ltd.
Facsimile: 306-244-0042 www.starminerals.ca