Vancouver BC, / ACCESSWIRE / October 30, 2014 / Redstar Gold Corp (TSX.V:RGC) ("Redstar" or the "Company") is pleased to announce that, together with Full Metal Minerals Ltd. (TSX.V:FMM) ("FMM") and the Aleut Corporation (an Alaska Native-owned Regional Corporation), it has signed an Assignment and Novation Agreement (the "Agreement") in respect of the Unga-Popov Property, whereby all rights and interests held previously by FMM are assigned to Redstar.
The terms of the original agreement have been amended, allowing Redstar to reduce the overall cost of the acquisition by approximately 24% through the issuance of fewer shares and a larger cash component. Under the terms of the original agreement with FMM--which has an exploration agreement with option to lease with the Aleut Corporation--Redstar agreed to purchase FMM's interest in the Unga-Popov Property in consideration for 4,000,000 common shares of Redstar and US$50,000. The terms of the original agreement have been amended to provide that Redstar is required to issue only 750,000 common shares, and pay to FMM US$50,000 (of which US$10,000 has been paid) and C$125,000.
The Agreement and the transaction contemplated thereunder are subject to approval by the TSX Venture Exchange.
Toby Mayo, President and CEO of Redstar, commented: "The strategic transaction between FMM, the Aleut Corporation and Redstar completes the consolidation of the Shumigan and Unga-Popov properties--together comprising the Unga Project. While the cash component of the transaction has increased, the overall cost to the Company is reduced significantly, providing Redstar shareholders with a less dilutive deal. The transaction, which gives Redstar undivided control of a district-scale exploration area covering approximately 250 km2, will afford the Company greater flexibility and control over future exploration."
The Company has recently completed its summer program at the Unga Project. The program consisted of detailed survey work, extensive rock and soil sampling and geological trench mapping covering three target areas: 1) the Apollo-Sitka Trend; 2) the Aquila Prospect; and 3) the Shumigan Prospect. Results are pending and will be released in due course.
About Redstar Gold Corp.
Redstar is a Vancouver based junior exploration company focused on high-grade gold exploration in North America. Each of Redstar and Confederation Minerals Ltd. (TSX.V:CFM) owns 50% of the Newman Todd Project, located in Red Lake, Ontario, Canada. In Alaska, the Company is exploring the high-grade Unga Project, which it acquired initially in 2011. At Unga, a comprehensive exploration program commenced in late July, 2014 and results are expected to be used to determine drill targets for a first phase diamond drill program. Additionally, the Company has ten properties in Nevada, which have been optioned to True Grit Resources Ltd. (NEX:TGI.H).
Jesse C. Grady, MSc, CPG-11592, the Company's Vice President of Exploration and a qualified person within the meaning of National Instrument 43-101, has reviewed and approved the technical content of this news release.
On Behalf of the Board,
Redstar Gold Corp.
"Toby Mayo"
Toby Mayo
President and CEO
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Forward-Looking Information This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Redstar Gold Corporation (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company 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 may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
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: Redstar Gold Corp.