Starcore Accepts Offer on its Ajax Property
Starcore reshapes assets with Ajax sale as stock-focus shifts to Mexican operations and Africa spin-out evolves
Executive Summary
- Starcore International Mines Ltd. has agreed to sell its 100% owned Ajax Property in British Columbia to Korestar Exploration Inc. for a combination of cash, work commitments, shares, and a net‑smelter royalty (NSR).
- The transaction is a related‑party deal; directors Robert Eadie and Gary Arca abstained from voting due to their interests in Korestar.
- Starcore announced the creation of an Advisory Committee chaired by Ms. Silvia Muzi to provide strategic, financial, and technical guidance to management.
Key Details
- Purchase Consideration:
- 2.5 million shares of Korestar issued to Starcore.
- C$100,000 cash payable within 180 days of signing the mineral property purchase agreement (Effective Date).
- Two work commitments of C$100,000 each – one due within 18 months and another within 36 months of the Effective Date.
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2.5 % net‑smelter royalty (NSR) on the Ajax Property, with an option for Korestar to repurchase 1.5 % NSR for C$1 million.
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Related Party Disclosure:
- Directors Robert Eadie and Gary Arca are shareholders of Korestar; they abstained from voting on the transaction.
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Starcore will rely on exemptions under MI 61‑101 because the deal represents less than 25 % of its market capitalization, avoiding a formal minority‑shareholder approval or valuation.
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Property Background:
- Ajax Property was acquired in 2015 as part of Starcore’s purchase of Creston Moly Corp.
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No material exploration has been undertaken over the past ten years; Starcore has no current plans to develop the property.
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Advisory Committee Formation:
- Established to advise on corporate strategy, capital allocation, technical initiatives, risk management, and project development.
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Chairperson: Ms. Silvia Muzi, Chartered Accountant and Statutory Auditor with >25 years of experience in tax, corporate advisory, and governance.
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Forward‑Looking Statements Disclaimer:
- Sale completion is subject to cash and work commitments being fulfilled by Korestar.
- No assurance that the property’s future development will yield positive results.
Notable Quotes
- “The establishment of the Advisory Committee reflects the Company's commitment to strong governance, disciplined growth, and the effective execution of its business strategy.” – Robert Eadie, President & CEO, Starcore International Mines Ltd.