By Laura Lutz
Des Moines, Oct. 19 - Megastar Development Corp. settled a private placement with MineralFields Group for C$955,000.
The investor bought 4.775 million units of one flow-through share and one non flow-through purchase warrant for C$0.20 per unit. Each warrant is exercisable for two years, at C$0.30 in the first year and C$0.40 in the second year.
The non-brokered deal priced on Sept. 27 as a placement of units for at least C$600,000 and up to C$1 million.
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$955,000
|
| Units: | 4,775,000
|
| 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
|
| Settlement date: | Oct. 19
|
| Stock symbol: | TSX Venture: MDV
|
| Stock price: | C$0.17 at close Sept. 26
|
| Stock price: | C$0.16 at close Oct. 18
|
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