Goldstar Minerals (TSX-V:GDM, StockForum), a Montreal-based company engaged in acquiring, exploring and evaluating mineral resource properties in Canada, announced today that Goldstar had appointed a new CFO and Secretary.
The company also announced that it had entered into a Mineral Option and Sale Agreement with Charles Morrissy for a 950-hectare, 46-claim exploration property located in New Brunswick.
In an effort to consolidate management within Quebec, Ercan Ugur will take over as CFO and David Johnston will assume the role of Secretary.
Ugur brings with him over thirty years of experience in the mining sector and is the CFO for Yorbeau Resources and Cancor Mines, while Johnston brings the same amount of experience in Mining and Securities Law and is legal counsel for numerous domestic and international mining and mineral exploration clients.
The New Brunswick Tungsten Property shows positive historical data and is located in Prince William Parish of York County, approximately 40km west of Fredericton. The property possesses good year-round access and proximity to infrastructures.
According to the news release, “The agreement provides for the payment of $25,000 at closing and the issue of 100,000 treasury shares. In addition, the Company shall pay Morrissy $100,000 on each anniversary date of the closing up to the fifth anniversary in order to acquire a 90% interest in the property.”
It went on to add, “An interest of 95% can be achieved by a further payment of $1,000,000, and 100% by an additional payment of $2,000,000. The Company shall also pay $25,000 to Mr. Morrissy every year for a period of five years as an advance on the $1,000,000 payment referred to in the previous sentence.”
Goldstar's New Brunswick option agreement is subject to a due diligence review, which the company noted is currently underway, and the agreement still has to gain both board and TSX approval.
Goldstar was in the news recently when the company announced private placement financing at the beginning of September.
Shares jumped 25% on the news to $0.10 per share.
Currently there are 9.3m outstanding shares with a market cap of $934,220.