GOLDSTAR ENTERS INTO AGREEMENT TO ACQUIRE PROJECT IN QUÉBEC

KUALA LUMPUR, May 12 (Bernama) -- Goldstar Minerals Inc (Goldstar or the Corporation) has entered into a Purchase and Sale Agreement (the Agreement) for the acquisition of eight claims (the IMV Project) located in the Montérégie region of southern Québec, covering an area of approximately 481.05 hectares.

Dated Jan 27, the Agreement provides details including the name of the Corporation would be changed to Green Mining Innovation, the trading symbol would become GMI, and the Corporation will adopt an ecological, innovative and environmentally friendly approach to work.

In an arm’s length transaction, the Corporation will issue 18 million shares to the current owners (Owners) of the IMV Project at a deemed price of CAD$0.08 per share and will pay in shares a finder’s fee of five per cent equivalent to 900,000 shares. (CAD$1=RM3.31)

According to a statement, the Corporation would proceed with a non-brokered private placement for CAD$500,000 consisting of 8,333,333 units, at a price of CAD$0.06 per unit.

Each unit will consist of one common share and one purchase warrant where each warrant shall entitle the holder thereof to subscribe for one additional common share at an exercise price of CAD$0.12 at any time until two years after closing.

The warrants will provide for an acceleration clause if the shares trade above a specified price for more than 20 consecutive days.

With respect to subscriptions originating from a qualified intermediary, the Company may pay in cash a fee equal to seven per cent of the subscribed amount.

The private placement use of proceeds will be for transaction expenses (stock exchange fees, legal fees, geology consultant fees) and for exploration expenses to be incurred on the Corporation’s IMV Project.

The Owners of the IMV Project will have three representatives on the board of directors of the Corporation, namely André Gagné, Jacques Tremblay and Daniel Routhier. At closing, Gagné will become President and Chief Executive Officer, while Tremblay will become Chief Operating Officer.

-- BERNAMA