TORONTO, ONTARIO--(Marketwire - Oct. 11, 2012) - Goldstar Minerals Inc. ("Goldstar" or the "Company") (TSX VENTURE:GDM) is pleased to announce that it has entered into a letter agreement with NioGold Mining Corp. ("Niogold") (TSX VENTURE:NOX) to acquire up to a 75% interest from Niogold in 463 claims covering approximately 26,725 hectares (267 km2), located in Mont-Laurier, Quebec (the "Pump Lake Property"). Goldstar and Niogold will negotiate in good faith an option agreement regarding the Pump Lake Property (the "Definitive Agreement"), to be executed no later than October 31, 2012.
Pursuant to the Definitive Agreement, Niogold will grant to Goldstar the exclusive right and option to acquire an undivided interest of 75% in and to the Pump Lake Property by paying an amount of $25,000, issuing 750,000 common shares of Goldstar to Niogold and incurring in the aggregate an amount of $375,000 in exploration expenditures on the Pump Lake Property over a two year period.
Closing of the acquisition remains subject to the execution of the Definitive Agreement and the receipt of all necessary Board and regulatory approvals, including the approval of the TSX Venture Exchange.
The Pump Lake Property is located roughly 150 km northeast of the town of Mont-Laurier, Quebec and access is excellent through a network of logging roads. The property is underlain by the Lesueur alkaline complex favourable for polymetallic mineralizations. Lake bottom sediment samples collected by the Ministère des Ressources naturelles du Québec ("MRN") in the past yielded many anomalous copper and rare earth elements values, within the Pump Lake Property. Niogold has performed several geophysical surveys over the years and Goldstar Minerals plans a detailed geochemical soil survey in the coming weeks in order to define diamond drill targets.
Benoit Moreau, P.Eng., and the President and CEO of the Company, is a Qualified Person as such term is defined for the purposes of National Instrument 43-101 and has read and approved the scientific and technical content of this press release.
On behalf of the Board of Directors of
GOLDSTAR MINERALS INC.
Benoit Moreau, Chief Executive Officer
This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
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.