/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES/
TORONTO, Sept. 13, 2012 /CNW/ - Polar Star Mining Corporation ("Polar Star") (TSX:PSR) announces that further to its news release dated February 21, 2012, it
has entered into an amended and restated option agreement (the "Amended
and Restated Option Agreement") with Kairos Capital Corporation
("Kairos") to amend certain terms of the option agreement between Polar
Star and Kairos dated February 16, 2012 (the "Original Option
Agreement"), pursuant to which Kairos agreed to acquire an interest in
certain mineral exploration properties located in Chile (the "Assets").
Pursuant to the terms of the Original Option Agreement, Kairos agreed to
acquire from Polar Star a 51% interest in: (i) 16 mineral exploration
concessions, known as the "Nancagua Property"; (ii) 29 exploration
concessions and an option to acquire five (5) additional exploration
concessions, known as the "Fortuna Property"; and/or (iii) one of Polar
Star's non-core properties.
Under the terms of the Amended and Restated Option Agreement, Kairos
will pay US$165,000 to Polar Star and shall have funded US$50,000 of
option payments due to a third party in respect of the Fortuna
Property, in exchange for which Kairos will acquire a 100% interest and
a 50% interest in the Nancagua Property and the Fortuna Property,
With respect to the Fortuna Property, under the terms of the Amended and
Restated Option Agreement, Kairos will have the option of increasing
its interest in the Fortuna Property if Kairos:
funds the $1,300,000 in scheduled option payments due to a third party
by May 31, 2014, Kairos shall earn an additional 10% interest in the
incurs additional exploration costs of $600,000 on or before March 31,
2015, Kairos shall earn an additional 5% interest in the Fortuna
if Kairos completes a bankable feasibility study in respect of the
Fortuna Property on or before March 31, 2023, Kairos shall earn an
additional 10% interest in the Fortuna Property.
Kairos has also selected a property known as the "Salvadora Property",
which was one of Polar Star's non-core properties, comprised of 36
exploration concessions encompassing approximately 9,400 hectares.
Pursuant to the terms of the Amended and Restated Option Agreement,
Kairos will have the option to earn a 51% interest in the Salvadora
Property by spending $600,000 on exploration programs on the Salvadora
Property on or before March 31, 2014 (the "Earning Phase"). Upon
completion of the Earning Phase, Kairos shall have the option of
increasing its interest in the Salvadora Property. If Kairos incurs
exploration costs on the Salvadora Property of:
an additional $1,100,000 on or before March 31, 2015, Kairos shall earn
an additional 9% interest in the Salvadora Property;
an additional $1,500,000 on or before March 31, 2016, Kairos shall earn
an additional 5% interest in the Salvadora Property; and
an additional $3,000,000 on or before March 31, 2019 or brings the
Salvadora Property to production, Kairos shall earn an additional 10%
interest in the Salvadora Property.
This news release may contain forward-looking statements based on
assumptions, uncertainties and management's best estimates of future
events. Actual events or results could differ materially from the
Company's expectations and projections. Investors are cautioned that
forward-looking statements involve risks and uncertainties.
Accordingly, readers should not place undue reliance on forward-looking
statements. When used herein, words such as "anticipate", "will",
"intend" and similar expressions are intended to identify
forward-looking statements. For a more detailed discussion of such
risks and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements, refer to Polar Star's filings with Canadian securities
regulators available on www.sedar.com or the Company's website at www.polarstarmining.com.
About Polar Star
Polar Star is an emerging exploration company with a focus on building
value in Chile through discovery, development and production. The
company is advancing its flagship exploration property, Montezuma, that
covers 40 kilometres of the West Fault zone and the cross-cutting
Esperanza Fault systems. The property is located between Codelco's
Radomiro Tomic - Chuquicamata - Ministro Hales mines in the north and
Antofagasta PLC's El Tesoro - Esperanza - Polo Sur mines to the south.
Polar Star operates the Chépica gold/silver/copper mine located 270
kilometres south of Santiago, Chile. The head office of Polar Star is
located in Toronto.
Shares outstanding: 99,276,001 as at September 13, 2012.
SOURCE: Polar Star Mining Corporation
For further information:
Adam Rochacewich, CFO
Tel: (416) 368-3496