Vancouver, BC / ACCESSWIRE / May 28, 2014 / Weststar Resources Corp. (TSX-V:WER) ("Weststar" or the "Company") announced today that it intends to undertake a non-brokered private placement, on a post-Consolidation basis (as defined below), of up to 7,000,000 units in the capital of the Company (each, a "Unit") at a price of $0.05 per Unit for gross proceeds of up to $350,000 (the "Financing").
Each Unit will consist of one post-Consolidation common share in the capital of the Company and one transferable common share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder to acquire one post-Consolidation common share at a price of $0.10 per share for a period of 2 years from the closing date.
The proceeds of the Financing will be used by Weststar for general corporate and working capital purposes. All securities issued in connection with the Financing will be subject to a four-month hold period under applicable Canadian securities laws.
Closing of the Financing is subject to the approval of the TSX Venture Exchange (the "TSXV").
Proposed Share Consolidation
In addition, and in conjunction with the proposed Financing, the Company intends to amend its share structure by consolidating its issued and outstanding common shares on the basis of one (new) post-consolidation share for each two (old) pre-consolidation shares (the "Consolidation").
The board of directors of the Company believes that the Consolidation is necessary due to market conditions that have made it challenging to raise capital under the current share structure of the Company. There will be no name change in conjunction with the Consolidation and the Consolidation is subject to the approval of the TSXV.
For further info on the Company please visit www.weststarresources.com or email [email protected]
On Behalf of the Board
Will Rascan, President/CEO
Weststar Resources Corp.
Neither the 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.
This press release contains forward-looking statements about Weststar Resources Corp. Forward-looking statements are statements that are not historical facts. The forward-looking statements in this press release are subject to various risks, uncertainties and other factors that could cause the resulting issuer's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. These risks, uncertainties and other factors include, without limitation, uncertainty as to resulting issuer's ability to achieve the goals and satisfy the assumptions of management general economic factors and other factors that may be beyond the control of the parties. Forward-looking statements are based on the beliefs, opinions and expectations of the management of Weststar Resources Corp. at the time they are made, and Weststar Resources Corp. does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.
SOURCE: Weststar Resources Corp.