By Laura Lutz
Des Moines, Sept. 27- Megastar Development Corp. priced a private placement with MineralFields Group for at least C$600,000 and up to C$1 million.
The company plans to sell units of one flow-through share and one non flow-through warrant sold for C$0.20 per unit. Each arrant will be exercisable for two years, at C$0.30 in the first year and at C$0.40 in the second year.
Proceeds will be used for accelerated exploration and drilling of the company's Simkar gold project, Ralleau zinc-copper volcanogenic massive sulphide properties in Quebec and Sedex zinc property in British Columbia.
Megastar is a resource company based in Vancouver, B.C. MineralFields, a division of Pathway Asset Management, is a mining fund with headquarters in Toronto.
| Issuer: | Megastar Development Corp.
|
| Issue: | Units of one flow-through share and one non flow-through warrant
|
| Amount: | C$1 million (maximum)
|
| Units: | 5 million
|
| Price: | C$0.20
|
| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30 in the first year; C$0.40 in the second year
|
| Investor: | MineralFields Group
|
| Pricing date: | Sept. 27
|
| Stock symbol: | TSX Venture: MDV
|
| Stock price: | C$0.17 at close on Sept. 26
|
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