Eagle Star Petroleum Corp. closes First Tranche of financing previously announced on April 15, 2010.
FOR IMMEDIATE RELEASE TSXv Trading Symbol: EGE FSE: E6R.F
Eagle Star Petroleum Corp. closes First Tranche of financing previously announced on April 15, 2010.
May 28 , 2010, Vancouver, British Columbia: Eagle Star Petroleum Corp., (TSX.v: EGE) (FSE: E6R.F) (“Eagle Star” or "the Company") is pleased to announce that it has completed the first tranche of its previously announced non-brokered private placement of 12,500,00 units (the “Units”) at a price of $0.10 per Unit. A total of 10,000,000 units will be issued in the first tranche. Eagle Star expects that the remaining 2,500,000 units will close by mid June, subject to TSX Venture Exchange approval.
Each Unit will consist of one common share of the Company (a “Share”) and one half of one transferable common share purchase warrant (a “Warrant”).Each whole Warrant will be exercisable to acquire one additional Share for a period of 18 months from the closing of the Private Placement at an exercise price of $0.20. In the event that the common shares of the Company trade at a closing price in excess of $0.20 per share for a period of 10 consecutive trading days at any time after four months past the closing date, the Company will accelerate the expiry date of the warrants by giving notice to the holders thereof and in such case, the warrants will expire on the 30th day after the date on which such notice is given by the Company. All securities issued in connection with the first tranche closing will be subject to a four-month plus one day hold period, expiring September 27, 2010.
The funds will be used for the acquisition and Stage 1 of the exploration program of the iron ore project and general working capital.
About the Company
Eagle Star Petroleum Corp. is a Natural Resource company headquartered in Vancouver, British Columbia. The Company’s shares are publicly traded on the TSXv under the symbol EGE and on Frankfurt Stock Exchange under the symbol E6R.F.
On behalf of the Board of Directors
EAGLE STAR PETROLEUM CORP.
“Eran Friedlander”
Eran Friedlander, President
For more information contact: Balraj Mann, CFO
Phone: 1-604-601-2018 Email: [email protected]
Forward-Looking Statements
This document includes forward-looking statements that are not historical facts. Forward-looking statements include, but are not limited to, statements that we can successfully fulfill the conditions to closing, receiving TSX approval of the private placement and the subsequent completion of the private placement of up to 12,500,000 units, and that the funds from the private placement will be used for the acquisition and Stage 1 of the exploration program of the iron ore project. Although Eagle Star believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Factors that could cause actual results to differ materially include inability by either party to fulfill conditions to close, the uncertainty of the requirements demanded by regulatory agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants, competition for equipment, inability to obtain permits, potential delays or obstacles in operations and interpreting data, and the likelihood that no commercial quantities of iron ore are discovered. Readers should also review the corporation’s periodic filings with Canadian securities regulators for additional risk factors.
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.