09:49:39 EDT Sat 18 May 2024
Enter Symbol
or Name
USA
CA



Western Star Resources Inc
Symbol WSR
Shares Issued 11,396,000
Close 2023-07-20 C$ 0.12
Market Cap C$ 1,367,520
Recent Sedar Documents

Western Star to acquire Toad River

2023-07-20 11:40 ET - News Release

Mr. Blake Morgan reports

WESTERN START RESOURCES INC. ANNOUNCES ENTRY INTO AGREEMENT TO ACQUIRE TOAD RIVER COPPER-COBALT PROPERTY AND ANNOUNCES GRANT OF INCENTIVE AWARDS

Western Star Resources Inc. has entered into an agreement to acquire the Toad River copper-cobalt property located in the Peace River North area of British Columbia. The property is located 56 kilometres (km) south of Muncho Lake (Alaska Highway) and 16 km west of the historically producing Churchill copper mine.

Property highlights:

  • Assays of 15.60 per cent and 14.80 per cent copper;
  • Measured 730 metres of known strike length;
  • Copper mineralization chalcopyrite bornite;
  • Possible erythrite (a hydrous cobalt arsenate).

Blake Morgan, the chief executive officer and president of Western Star, stated: "The 100-per-cemt acquisition of the Toad River copper-cobalt property is a huge accomplishment and a move in the right direction for the company. The 730 metres of strike length and the identification of copper and cobalt minerals indicate that a much larger mineralized system is proximal. With extremely high-grade copper values on this asset, our team is going to crunch the data and then work to get crews on the ground to follow up on these numbers. With the demand for copper set to outstrip supply, I am looking forward to beginning exploration for cobalt and copper on the property."

The property hosts approximately 730 metres in length of dissentious vein type copper mineralization, in the form of chalcopyrite, bornite and pyrite within the Proterozoic rocks of the Aida formation.

In 1970, Canadian Superior Exploration Ltd. collected 15 continuous chip samples across various sections of the mineralized veins. The copper assay values, along with the sample widths, are given in the attached table.

The veins occur as discontinuous, lens-shaped pods of variable dimensions with widths between 15 and 90 centimetres and lengths of less than 25 metres. Situated primarily along the northwest margin of a steeply dipping, northeast-striking dike which transects a number of north-trending dikes. Less significant veins occur in proximity or adjacent to the southeast margin of the dike. In a number of locations, thin selvages of country rock are positioned between the dike wall and vein.

The mineralization consists principally of chalcopyrite with minor amounts of pyrite, bornite, malachite and erythrite, and occurs within the veins in association with quartz, carbonate or ankerite, and sedimentary rock inclusions. Chalcopyrite appears as blebs, clusters and pockets, as well as lenses within the veins, and primarily in association with the rock inclusions.

Terms of the acquisition

Pursuant to the agreement, the company will acquire the property indirectly through an acquisition of all the issued and outstanding shares of Lish Ventures Inc., the company that holds 100 per cent of the beneficial interest in the two mineral titles comprising the property. In exchange for its acquisition of Lish Ventures, the company will issue an aggregate of five million common shares in the capital of the company to the current shareholders of Lish Ventures and grant a 1-per-cent NSR (net smelter return) royalty in respect of commercial production from the property.

Option issuance

The company has granted an aggregate of 1.1 million stock options to certain directors, officers and consultants of the company. Each option confers the right to purchase one common share at an exercise price of 8.5 cents per common share until July 20, 2025. All options are fully vested immediately upon grant.

Of the options granted, 650,000 options were granted to directors or officers of the company. The company relied on Section 5.5(a) of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) as the exemption from the formal valuation requirements of MI 61-101 and Section 5.7(1)(a) of MI 61-101 as the exemption from the minority approval requirements of MI 61-101 in respect of the options grant to the directors and officers of the company, as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the options granted to the directors and officers of the company exceeded 25 per cent of the company's market capitalization.

The company did not file a material change report at least 21 days prior to the grant of options to ensure the company was able to grant the options in an expedient manner.

Qualified person

Derrick Strickland, PGeo, a qualified person for the purposes of National Instrument 43-101 (Standards of Disclosure for Mineral Projects), has reviewed and approved the scientific and technical information contained in this news release.

About Western Star Resources Inc.

Western Star is a mineral exploration and development company. The company's objective is to increase shareholder value through the development of exploration properties using cost-effective exploration practices, acquiring further exploration properties, and seeking partnerships by either joint venture or sale with industry leaders. The company currently owns nine non-surveyed contiguous mineral claims totalling 2,797 hectares, which are located within the Revelstoke mining division of British Columbia. The Western Star property group is located approximately 50 kilometres southeast of Revelstoke, B.C., and roughly 10 kilometres north of the abandoned community of Camborne. Access to the Camborne area is through paved highway from either Revelstoke or Nakusp. Access to the property area is best through helicopter from Revelstoke or Nakusp.

We seek Safe Harbor.

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