Megastar Closes Options on Epithermal Au-Ag Projects in Oaxaca, Mexico
MEGASTAR DEVELOPMENT CORP. #1450 - 789 W. Pender Street, Vancouver, BC, Canada V6C 1H2
Tel.: (604) 681-1568, Fax: (604) 681-8240
Toll Free: 1-877-377-6222
www.megastardevelopment.com
TSX-V: MDV Frankfurt: M5QN
Megastar Closes Options on Epithermal Au-Ag Projects in Oaxaca, Mexico
Vancouver, BC, Canada, August 9, 2018 - Megastar Development Corp. (“Megastar”, the
“Company” or “MDV”) (TSX-V: MDV; Frankfurt: M5QN) is pleased to announce that further to
signing the three option agreements (the “Option Agreements”) to acquire a 100% undivided interest
(the “Options”) in the Rama de Oro, Magdalena and Yautepec projects (the “Projects”), located in the
state of Oaxaca, Mexico (see press releases dated May 10 and June 4, 2018 for more information on the
Projects and the Option Agreements), the Company has proceeded with the closing of these transactions
with the owner of the Projects, Minera Zalamera S.A. de C.V. (“Minera Zalamera”).
As such, as contemplated by the Option Agreements, the Company paid a total amount of USD $45,000
and issued a total of 1,500,000 common shares for the benefit of Minera Zalamera. Furthermore, Mr.
David M. Jones, president of Minera Zalamera, has been appointed to the board of directors of
Megastar.
Mr. Jones is a graduate of Dartmouth College and the University of Arizona with 40 years’ experience
in mineral exploration and project development in the U.S. and Latin America. As the foremost expert in
the Guerrero Gold Belt, Mr. Jones discovered the Los Filos gold deposit in 1995 (Teck), was the leader
of the technical team that won the bid for the Morelos reserve in 1998 (El Limon-Guajes deposits) and
served as the principal geologic advisor in the start-up of Torex Gold Resources Inc. For the past 16
years he has worked extensively in epithermal precious metals system in Oaxaca and was responsible
for targeting the recent discovery of Gold Resource Corporation’s (NYSE: GORO) polymetallic
Switchback mine. Mr. Jones was a board member of Cayden Resources Inc. at the time of its $205
million sale to Agnico Eagle, and is currently a director of both Minaurum Gold Inc. (TSX -v: MGG)
and the private concern Acapulco Gold.
“We are very excited to have concluded on this acquisition”, said Dusan Berka, CEO of Megastar
Development. “These projects have been on our radar for some time and bring with it two most
important ingredients for early stage exploration - location and expertise. On location, the properties sit
on the trend of two producing mines – Gold Resource Corporation’s Arista/Switchback Mine complex
(NYSE: “GORO”) defining the southeast arm of the trend, and Fortuna Silver Mines Inc.’s San Jose
Mine (TSE: “FVI”) defining the western extension. From a technical perspective, having David Jones, a
geologist with extensive experience and success in Mexico, having been part of the finds of several, now
producing mines join the Board of Directors, is a real coup for our Company. David, in addition to being
a Director of the Company, will also be the technical advisor/consultant to the Company in relation to its
exploration activities in Mexico, and an instrumental part of the exploration team, allowing us to benefit
from his historical understanding of the properties and their surrounding geology.” Mr. Berka concludes:
“On behalf of the Board of Directors and the Management, I’d like to express our sincere thanks to all
our loyal shareholders and investors for their patience and continued support”.
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Within the next year, in order to keep the Options in good standing under the Option Agreements, the
Company will need to issue an additional 1.5 million common shares and incur exploration expenditures
on the Projects for the total amount of USD $230,000.
All securities issued in connection with the closing are subject to a hold period of 4 months and one day
expiring on December 9, 2018. Furthermore, the transaction remains subject to the final approval of the
TSX Venture Exchange.
ABOUT MEGASTAR DEVELOPMENT CORP.
Megastar Development Corp. is an emerging resource company engaged in the evaluation, acquisition
and exploration of mineral properties. Megastar currently owns mineral property in Quebec. For further
information, investors and shareholders are invited to visit the Company’s website at
www.megastardevelopment.com or call the office at 604-681-1568, or toll free at 1-877-377-6222.
ON BEHALF OF THE BOARD OF DIRECTORS
”DUSAN BERKA”
Dusan Berka, P. Eng.
President & CEO
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 news release.