15:41:33 EST Mon 04 Mar 2024
Enter Symbol
or Name

Desert Star Resources Ltd
Symbol DSR
Shares Issued 51,633,317
Close 2015-04-20 C$ 0.165
Market Cap C$ 8,519,497
Recent Sedar Documents

Desert Star to acquire Fortuna 1 and 2 mining claims

2015-04-21 19:11 ET - News Release

Mr. Vince Sorace reports


Desert Star Resources Ltd. has entered into an option agreement for the purchase of the Fortuna No. 1 and Fortuna No. 2 patented lode mining claims, situated in the Pioneer mining district, Pinal county, Arizona. These patented lode claims reside within the company's Copper King project area.

Terms of the option agreement include the payment of $10,000 (U.S.) and the issuance of 25,000 common shares of the company within 10 business days of TSX Venture Exchange approval. The option will be for a period of 12 months, with the company having the right to extend the option for a further 12 months by paying an additional $15,000 (U.S.) to the sellers. The company may elect to purchase the property in full within the option period by paying an additional $50,000, issuing an additional 25,000 shares and granting a 1-per-cent net smelter return royalty (NSR) to the sellers. The NSR can be bought by the company by paying $100,000 (U.S.) any time prior to construction of a production facility. The option agreement and all securities to be issued under the option agreement are subject to the approval of the exchange, and, assuming approval, will be legended with a four-month-and-one-day hold period and such other restrictions as may be applicable to the sellers resident in the United States.

Subject to exchange approval, the company also proposes the extension of previously granted share purchase warrants from two separate private placements. Warrants entitling the purchase of 5,843,888 common shares of the company at a price of 25 cents will have their exercise term extended by one year from July 28, 2015, to July 28, 2016. Warrants entitling the purchase of 833,333 common shares of the company at a price of 40 cents will have their exercise term extended by one year from Aug. 24, 2015, to Aug. 24, 2016.

The company proposes the repricing of certain stock options that were formerly options of Providence Resources Corp. before the amalgamation of Providence and Desert Star to form the company. The proposed repricing was disclosed in the joint information circular for Providence and Desert Star dated March 5, 2015, and received disinterested shareholder approval at the annual general and special meeting of Providence held on April 8, 2015. Please refer to the joint information circular available on SEDAR under the profiles of Providence and Desert Star for more information. A total of 960,000 stock options will be repriced, of which 530,000 options are held by insiders of the company. The stock options will be repriced at prices ranging from 20 cents to 30 cents.

We seek Safe Harbor.

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