Arctic Star Announces Definitive Agreement
Vancouver, British Columbia, January 28, 2014 — Arctic Star Exploration Corp. (the “Company”) (TSX Venture: ADD) is pleased to announce that following its letter of intent with Damon Capital Corp. (“Damon”), as announced on November 5, 2013, it has entered into a definitive property option agreement (the “Agreement”) with Damon Capital Corp., pursuant to which Damon has been granted the option to acquire a 75% joint venture interest in the CAP Property (the “Property”).
As previously announced, the transaction will constitute Damon Capital’s qualifying transaction (the “Qualifying Transaction”) under the policies of the TSX Venture Exchange (the “Exchange”). The Property consists of six contiguous mineral tenures covering approximately 2,353.83 hectares and is located approximately 85 km northeast of Prince George, British Columbia. Damon Capital is an arm’s length exploration company also listed on the Exchange.
Pursuant to the Agreement, in order for Damon Capital to exercise the option to acquire the 75% joint venture interest in the Property, the Company is required to (i) pay to Arctic Star $25,000 on execution of the Agreement (paid) and (ii) incur exploration expenditures on the Property totaling up to $1,450,000 over 36 months as follows:
- $100,000 on or before the first anniversary of Exchange acceptance of the Qualifying Transaction;
- $350,000 on or before the second anniversary of Exchange acceptance of the Qualifying Transaction; and
- $1,000,000 on or before the third anniversary of Exchange acceptance of the Qualifying Transaction.
The Damon Capital can satisfy its initial $100,000 exploration expenditure requirement by paying to Arctic Star $100,000 in cash, upon which Arctic Star will carry out any exploration programs for the first year of the option under the Company’s direction. If the minimum work program is not completed, the Property will revert to Arctic Star.
Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable pursuant to Exchange Requirements. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.”
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 news release includes forward looking statements that are subject to assumptions, risks and uncertainties. Statements in this news release which are not purely historical are forward looking statements, including without limitation any statements concerning the Company’s intentions, plans, estimates, expectations or beliefs regarding the future. Although the Company believes that any forward looking statements in this news release are reasonable, there can be no assurance that any such forward looking statements will prove to be accurate. The Company cautions readers that all forward looking statements, including without limitation those relating to the Company’s future operations and business prospects, are based on assumptions none of which can be assured, and are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated in the forward looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance on forward looking statements.
Any forward looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward looking statements, or to update the reasons why actual events or results could or do differ from those projected in the forward looking statements. Unless otherwise required by law, the Company assumes no obligation to update any forward looking statements, whether as a result of new information, future events or otherwise.