Selkirk Metals and Doublestar Resources to Merge to Accelerate Development of their Flagship Ruddock Creek Property



    TSX Venture Symbol: DSR
    TSX Venture Symbol: SLK

    VANCOUVER, March 1 /CNW/ - Selkirk Metals Corp. ("Selkirk") (TSX-V: SLK)
and Doublestar Resources Ltd. ("Doublestar") (TSX-V: DSR), joint venture
partners since 2004 in the Ruddock Creek zinc-lead property 100 kilometers
north of Revelstoke, announce today that they have executed a binding letter
of intent intended to merge their businesses. The combined assets of both
companies, should the merger proceed as currently planned, would result in
approximately $14 million in current assets and a strong suite of B.C base
metal mineral projects.
    The merger is expected to proceed based on a court-approved plan of
arrangement under the British Columbia Business Corporations Act (the
"Transaction").
    Under the terms of the Transaction, it is proposed that each existing
Class "A" share of Doublestar will be exchanged for one-half of one common
share of Selkirk. In addition, all existing warrants of Doublestar and the
outstanding stock options of Doublestar held by certain employees will be
exchanged for economically equivalent warrants and options of Selkirk, based
upon the same exchange ratio described above.
    Gordon Keevil, President of Selkirk, stated, "This transaction, which is
financially positive to Selkirk, will consolidate the working interest in the
Ruddock Creek Property putting Selkirk in a much stronger position to advance
its exploration and ultimate development. Furthermore, Selkirk looks forward
to the addition of Doublestar's excellent portfolio of properties, which will
enhance our already strong and diverse property base. We will continue to
aggressively advance all of these properties to create greater value for our
shareholders, including those we are inheriting from Doublestar through this
transaction. We are also looking forward to working on an ongoing basis with
the management of Doublestar to achieve the best possible results on behalf of
the shareholders of both Selkirk and Doublestar."
    Alan Savage, Chief Executive Officer of Doublestar, said, "Doublestar's
board of directors fully supports the Selkirk proposal. This transaction can
effect enhanced shareholder value for both companies by placing the
world-class potential of the Ruddock Creek zinc-lead deposit under one roof.
In addition, the combination of Doublestar's other resource assets, including
the large Catface copper deposit, with those of Selkirk will create one of the
strongest base metal mineral deposit portfolios in British Columbia. We are
extremely optimistic for a positive outcome for shareholder value based on
this transaction, and I look forward to working with the board of directors of
Selkirk in that regard."

    
    Completion of the Transaction, which is expected to occur in late June
2007, is subject to a number of conditions, including:

    (a) satisfactory completion of due diligence by both parties and
        execution of a definitive agreement by no later than March 31, 2007;

    (b) receipt of all necessary shareholder, court, regulatory and third
        party approvals; and

    (c) the absence of any material adverse change in the business of either
        Selkirk or Doublestar.
    

    The parties intend to work towards executing a definitive agreement by no
later than March 31, 2007 and will, thereafter, prepare a formal information
circular describing the Transaction in more detail and deliver that circular
to all shareholders of Doublestar, who will be asked to approve the
Transaction at a meeting expected to be held in mid June 2007. The approval of
Selkirk shareholders is not expected to be required in order to complete the
Transaction.
    All directors and officers of Doublestar (and their respective affiliates
and associates) have entered into or have agreed to enter into support
agreements with Selkirk pursuant to which they have agreed to support the
Transaction and vote all shares of Doublestar held by them in favour of the
Transaction.
    Selkirk and Doublestar will keep shareholders updated on the progress of
the Transaction as developments warrant.

    
    On Behalf of the                    On Behalf of the
    Board of Directors                  Board of Directors
    of Selkirk Metals Corp.:            of Doublestar Resources Ltd:

    (signed) "Gordon Keevil"            (signed) "Alan Savage"

    Gordon Keevil, President            Alan Savage, Chief Executive Officer
    

    This release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. All statements in this release, other than
statements of historical facts, that address future production, reserve
potential, exploration and development activities and events or developments
that management of Selkirk and Doublestar expects, are forward-looking
statements. Although management believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance, and actual results or
developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially from
those in forward-looking statements include market prices, exploration and
development successes, continued availability of capital and financing, and
general economic, market or business conditions. Please see the public filings
of both Selkirk and Doublestar at www.sedar.com for further information.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THE CONTENTS OF THIS
    PRESS RELEASE.

    %SEDAR: 00008416E




For further information:

For further information: on Selkirk Metals Corp. please visit its
website at www.selkirkmetals.com and for further information on Doublestar
Resources Ltd. please visit its website at www.doublestar.net

Organization Profile

DOUBLESTAR RESOURCES LTD.

More on this organization

SELKIRK METALS CORP.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890