TSX.V: FS OTCBB:
FSRFF FSE: F2U
VANCOUVER, May 12 /CNW/ - First Star Resources Inc. (TSX-V: FS) (the "Company") announces that further to its news release dated March
25, 2011, it has increased its non-brokered private placement to
8,000,000 units at a price of $0.15 per unit for gross proceeds of
$1,200,000 (the "Offering").
Each Unit will be comprised of one common share (the "Common Share") and
one non-transferable common share purchase warrant (the "Warrant") of
the Company. Each Warrant will entitle the holder to purchase one
Common Share (a "Warrant Share") for a period of 24 months from the
closing date at an exercise price of $0.20 per Warrant Share, subject
to the Company's right of acceleration described below.
The Company may, in its sole discretion but only in the event that the
average trading price of the Common Shares on the TSX Venture Exchange
has been $0.45 per share or greater for a period of 10 days, accelerate
the expiry period of the Warrant by providing written notice of such
acceleration by way of a news release (the "Acceleration Notice"), such
that the exercise period of the Warrant will expire on that day which
is 30 days from the date of the Company's Acceleration Notice.
The Company may, in its sole discretion, pay a finder's fee to agents of
the Company consisting of a cash fee in an amount of up to 7% of the
proceeds raised by such agent as part of this Offering. The proceeds
raised will be used for general working capital.
This Offering is subject to the TSX Venture Exchange approval.
About First Star Resources Inc.
First Star Resources is a junior exploration company focused on gold
exploration in the world famous Tintina Gold belt in Alaska. The
Tintina Gold belt hosts major gold deposits and several mines, such
as: Fort Knox Mine-3.7 million oz gold, the Donlin Creek deposit 33.5
million oz. gold, the Livengood deposit, 8.1 million oz gold, White
Gold deposit 1.4 million oz gold (recently taken over by Kinross Gold
Corp), and the Pogo Mine 5.6 million oz gold, which is adjacent to one
of First Stars Resources' key targets for this year, and the WP
property. International Tower Hill (ITHT) spent millions of dollars on
the WP and LMS properties which they optioned to First Star Resources
after they made their discovery at Livengood. Both of these properties
have well defined gold targets. First Star Resources recently completed
drilling on the LMS, property and now is in the planning stages for its
work programs set for early 2011.
ON BEHALF OF THE BOARD
John Campbell CEO
Visit the Company's website, www.firststarresources.com
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Forward-looking statements relating to future events or future
performance and reflecting First Star Resources or beliefs regarding
future events include, but are not limited to, statements with respect
to completion of the private placement and related matters. In certain
cases, forward-looking statements can be identified by the use of words
such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of
such words and phrases or statements that certain actions, events or
results "may", "could", "would", "might" or "will be taken", "occur "or
"be achieved" or the negative of these terms or comparable terminology.
By nature, forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of First Star Resources to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such factors
include, among others, risks related to actual results of current
exploration activities; changes in project parameters as plans continue
to be refined; future prices of resources; possible variations in ore
reserves, grade or recovery rates; accidents, labour disputes and other
risks of the mining industry; delays in obtaining governmental
approvals or financing or in the completion of development or
construction activities; as well as those factors detailed from time to
time in Petro Horizon's interim and annual financial statements and
management's discussion and analysis of those statements, all of which
are filed and available for review on SEDAR at www.sedar.com. Although First Star Resources has attempted to identify important
factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there
may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue reliance
on forward looking statements.
"NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE First Star Resources Inc.
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