Iron Butte Project Update, Share Consolidation and Financing
Desert Star Resources Ltd. |717 – 1030 West Georgia Street | Vancouver, British Columbia | Canada | V6E 2Y3
Telephone: (604) 628-5623 | www.desertstar.ca
Iron Butte Project Update, Share Consolidation and Financing
Vancouver, B.C., April 13, 2017. Desert Star Resources Ltd. (TSX-V: DSR) (“Desert Star” or the
“Company”) announces that it has elected not to proceed with its proposed option to acquire the Iron
Butte oxide gold-silver project in Nevada, as previously disclosed in its March 6, 2017 news release.
In addition, the Company has approved proposed changes to the Company’s share structure to consolidate
its issued and outstanding common shares, and any securities convertible into common shares, on a two -
for-one basis. Under the proposed consolidation, two existing common shares will be consolidated into one
new common share. Outstanding convertible securities will be adjusted accordingly in terms of number
and exercise price. The Company currently has 32,895,802 common shares issued and outstanding, which
will be reduced to approximately 16,447,901 common shares. Fractiona l shares remaining after giving
effect to the consolidation will be cancelled without compensation, such that the holdings of each
shareholder will be rounded down to the nearest whole number of post-consolidation common shares.
The Company’s name will remain as “Desert Star Resources Ltd.” The Company’s articles permit the Board
of Directors to authorize a consolidation. The Board of Directors determined that consolidation is necessary
to make Desert Star’s share structure more facilitative for mineral project or acquisition transactions.
The Company will also conduct a private placement of up to 2,500,000 units (each a “Unit”) at a price of
$0.20 per post consolidated Unit for gross proceeds up to $500,000. 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 24 months from the date
of issue, at an exercise price of $0.25 per common share. The Company is actively in the process of pursuing
acquisitions in the resource sector and proceeds from the private placement will be used to fund due
diligence and transaction costs on potential projects.
All private placement securities will be restricted from trading for a period of four months from closing .
The private placement and share consolidation are subject to the approval of the TSX Venture Exchange
(“TSXV”).
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.