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Company Also Announces $2.0 Million Unit Offering
TORONTO, May 30, 2011 /CNW/ - Starfield Resources Inc. (TSX: SRU)(OTCBB:
SRFDF) ("Starfield" or the "Company") today announced it has closed its
private placement offering led by M Partners Inc. as sole agent,
announced on April 20, 2011 (the "Offering").
The Offering consisted of $3,789,635 of flow-through units
("Flow-Through Units") at a price of $0.075 per Flow-Through Unit. Each
Flow-Through Unit consisted of one flow-through common share and one
common share purchase warrant (each a "Flow-Through Unit Warrant").
Each Flow-Through Unit Warrant entitles the holder to purchase one
additional common share of Starfield at a price of $0.11 for 24 months
from the closing date. All securities issued under the Offering will be
subject to a hold period of four months plus one day extending from the
closing date of the Offering.
The Company intends to use the gross proceeds from the issuance of
Flow-Through Units for exploration on its Ferguson Lake project in
Nunavut. Such expenses constitute Canadian exploration expenses for
Canadian income tax purposes, including the advancement of its
proprietary hydromet process.
In connection with the Offering, the Company paid a cash commission of
8% of the gross proceeds and issued compensation options totalling 8%
of the number of Flow-Through Units issued under the Offering.
The Company also announced an offering of units (the "Common Unit
Offering"). The Common Unit Offering will consist of up to $2,000,000
of units ("Common Share Units") at a price of $0.055 per Common Share
Unit. Each Common Share Unit consists of one common share and one
common share purchase warrant (each a "Common Unit Warrant"). Each
Common Unit Warrant will entitle the holder to purchase one additional
common share of Starfield at a price of $0.10 for 36 months from the
closing date. All securities issued under the Common Unit Offering will
be subject to a hold period of four months plus one day extending from
the closing date of the Common Unit Offering.
The net proceeds from the issuance of the Common Share Units will be
used for exploration purposes on its Stillwater project in Montana and
for general working capital purposes.
Starfield Resources Inc. is an advanced exploration and development
stage company. The Company's primary asset is its Ferguson Lake
nickel-copper-cobalt-platinum-palladium property in Nunavut, Canada.
Additional assets include a nickel-copper-cobalt-PGE-chrome project in
the Stillwater district of Montana with historic copper, nickel,
chromite resources (non 43-101 and not to be relied on); the Moonlight
copper project in California; and two gold properties currently
leased/joint ventured in Nevada.
Starfield has also funded the development of a novel, environmentally
friendly and energy efficient hydrometallurgical flow sheet to recover
metals from massive sulphides.
This news release may contain certain information that constitutes
forward-looking statements. Forward-looking statements are frequently
characterized by words such as "plan," "expect," "project," "intend,"
"believe," "anticipate" and other similar words, or statements that
certain events or conditions "may" or "will" occur. Forward-looking
statements are based on the opinions and estimates of management at the
date the statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. These factors include the inherent risks
involved in the exploration and development of mineral properties, the
uncertainties involved in interpreting drilling results and other
geological data, fluctuating metal prices and other factors described
above and in the Company's most recent annual information form under
the heading "Risk Factors" which has been filed electronically by means
of the Canadian Securities Administrators' website located at www.sedar.com. The Company disclaims any obligation to update or revise any
forward-looking statements if circumstances or management's estimates
or opinions should change. The reader is cautioned not to place undue
reliance on forward-looking statements.
SOURCE Starfield Resources Inc.
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