Desert Star Announces Private Placement of Convertible Securities and Units
Desert Star Resources |717– 1030 West Georgia Street |Vancouver, British Columbia |Canada| V6E 2Y3|Telephone: (604) 628-5623| Facsimile:
(604) 647-6613 |www.desertstar.ca
TSX-V: DSR February 16, 2017
For Immediate Release
Desert Star Announces Private Placement of Convertible Securities and Units
Vancouver, B.C., February 1 6, 2017. Desert Star Resources Ltd. (TSX -V: DSR) (“Desert Star” or the
“Company”) announces that it will conduct a private placement of convertible securities having a face value
of $150,000 from arms’ length and a non-arms’ length party, a director of the Company. The convertible
securities bear interest at the rate of 10% per annum and have a maturity date of one year from the date of
advance. The lenders may convert at any time, all or a portion of the principal into units of the Company
at a price of $0.10 per unit (each an “Underlying Unit”). Each Underlying Unit consists of one common
share of the Company and one transferable common share purchase warrant (“Underlying Warrants”). Each
Underlying Warrant is exercisable into one common share in the capital of the Company for a period of 18
months from the date of issue, at an exercise price of $0.20 per common share.
The Company will also conduct a private placement of up to 600,000 units (each a “Unit”) at a price of
$0.10 per Unit for gross proceeds up to $60,000. Each Unit consists of one common share of the Company
and one transferable common share purchase warrant (“Warrants”). Each Warrant is exercisable into one
common share in the capital of the Company for a period of 18 months from the date of issue, at an exercise
price of $0.20 per common share. The private placement is subject to the approval of the TSX Venture
Exchange (“TSXV”).
The proceeds of the private placement will be used for general working capital purposes. All private
placement securities will be restricted from trading for a period of four months from closing.
The proposed issuance of private placement securities to a non-arms’ length party also constitutes a related-
party transaction under MI 61 -101. Because the Company’s shares trade only on the TSXV, the issuance
of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61 -101 pursuant to
Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI
61-101.
The Company’s previously announced loan and issuance of bonus securities will not be proceeding.
On behalf of the Board of
DESERT STAR RESOURCES LTD.
“Vince Sorace”
Vince Sorace
President and CEO, Desert Star Resources Ltd.
For further information regarding Desert Star, please email [email protected] or visit our website at
www.desertstar.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.