/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES/
TORONTO, Oct. 17, 2013 /CNW/ - Polar Star Mining Corporation (TSX:PSR) ("Polar Star" or the "Company") has signed a Memorandum of
Understanding ('MoU') with Xtract Resources Plc (AIM:XTR) ('Xtract')
providing Xtract with an exclusive four month period to conduct due
diligence on the Chépica gold and copper mine ('Project') located 300km
south of Santiago, Chile.
Polar Star, via a 100% owned Barbados subsidiary, owns 100% of the
Chilean company, Minera Polar, which in turn has an earn-in agreement
on the Project.
Per the terms of the MoU, Polar Star will receive US$250,000 from Xtract
in exchange for Xtract having the exclusive right to conduct due
diligence on the Project for a four month period.
At any time prior to the end of the four month period, should Xtract
wish to acquire Polar Star's interest in the Project, both Xtract and
Polar Star will enter into negotiations to complete a Definitive Sale
Agreement (subject to the approval and consent of the Boards of the
Companies and securities regulators).
Polar Star will advance all of the funds received from Xtract to
discharge a portion of its outstanding obligations related to the
Polar Star, via a 100% owned Barbados subsidiary, also owns 100% of the
Mejillones phosphate property ('Property') located near the city of
Antofagasta in Northern Chile, a phosphate development project covering
Upon execution of a Definitive Agreement for the acquisition of the
Project, the previously proposed JV agreement between the Company and
Xtract for the Property will be cancelled and Xtract will own 100% of
Colin Bird, Director and Chief Executive Officer of Polar Star is also
Executive Chairman of Xtract. Mr. Bird has an insignificant interest in
the issued share capital of Polar Star and Xtract. Nonetheless, Mr.
Bird has recused himself from any involvement, discussion or review
process with the Board of Polar Star Mining Corporation.
About Polar Star Mining Corporation
Polar Star Mining Corporation ("PSR") is a TSX listed exploration and
development company with a focus on building shareholder value in Chile
through the exploration program at its flagship Montezuma property and
to advance our large portfolio of other world-class projects in Chile
through strategic joint ventures.
Caution Regarding Forward-Looking Statements
Certain information in this news release, including the potential
definitive agreement with Xtract, constitute "forward-looking
information" within the meaning of applicable securities laws. When
used in this context, statements containing forward-looking information
may be identified by the use of words such as "anticipate", "believe",
"plan", "expect" or similar words or statements that certain events or
outcomes "may" or "will" occur. All statements in this news release,
other than statements of historical fact, are forward-looking
statements. By their nature, such statements are subject to
significant risks and uncertainties, which include, but are not limited
to, the conclusion of reaching a definitive agreement with Xtract,
consent of the transaction by the boards of directors of the Company
and Xtract, regulatory and government approvals, general economic
conditions, and the availability of financing to Xtract. Although the
Company believes that the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
including assumptions about general market conditions and obtaining
required approvals, many assumptions are based on factors and events
that are not within the control of the Company and there is no
assurance that they will prove to be correct. Accordingly, actual
results or developments may differ materially from the plans,
expectations, estimates or intentions expressed herein. Factors that
could cause actual results to differ materially from those in the
forward-looking statements expressed herein include market prices,
developments in exploration, the availability of capital and financing
to Xtract and general economic, market or business conditions.
Accordingly, readers are cautioned not to place undue reliance on
forward-looking statements. Except as required by law, the Company
disclaims any intention and assumes no obligation to update any
forward-looking statements even if new information becomes available,
as a result of future events or for any other reason.
Richard M. Giel
Chief Financial Officer
SOURCE: Polar Star Mining Corporation
For further information:
Richard M. Giel
Chief Financial Officer
Polar Star Mining Corporation.
Telephone: (416) 368-3496