Canstar Resources arranges $2-million private placement

Executive Summary

• Canstar Resources Inc. announced a non‑brokered private placement to raise up to $2 million through the issuance of flow‑through and non‑flow‑through units.
• Units are priced at 6.5¢ (non‑flow‑through) and 8.5¢ (flow‑through) per unit, each accompanied by common share purchase warrants exercisable at 10¢.
• Proceeds will fund Canadian exploration on Newfoundland properties (flow‑through units) and general corporate purposes—including work at Buchans, Mary March, and Golden Baie projects—as well as working capital.

Key Details

• Offering Size: Up to $2 million gross proceeds.
• Unit Structure – Non‑Flow‑Through:
• Price: 6.5¢ per unit.
• Composition: 1 common share + 1 transferable common share purchase warrant.
• Warrant terms: Exercise at 10¢ per share, valid for 36 months from issuance.
• Unit Structure – Flow‑Through:
• Price: 8.5¢ per unit.
• Composition: 1 flow‑through common share + ½ transferable common share purchase warrant (two half‑warrants equal one whole warrant).
• Warrant terms: Exercise at 10¢ per share, valid for 12 months from issuance.
• Use of Proceeds – Flow‑Through Units:
• Canadian exploration expenses on Newfoundland properties.
• Expected to qualify as flow‑through mining expenditures under Canada’s Income Tax Act; expenditures to be incurred by 31 Dec 2026 and renounced by 31 Dec 2025.
• Use of Proceeds – Non‑Flow‑Through Units & Warrant Exercise:
• General corporate purposes, including exploration at Buchans, Mary March, and Golden Baie projects.
• Working capital and corporate development activities.
• Regulatory Conditions:
• Subject to TSX Venture Exchange acceptance and other required approvals.
• Securities subject to a statutory hold period of four months and one day from closing.
• Finder’s Fees: May be payable in connection with the offering.
• Insider Participation: Insiders may participate; such participation is considered a related‑party transaction under MI 61‑101 but is expected to be exempt from formal valuation and minority‑shareholder approval because the fair market value will not exceed 25 % of market capitalization.

Notable Quotes

(No executive quotes were provided in the release.)