Five STAR Diamonds Ltd. Announces Agreements to Acquire New Copper Porphyry Projects IN Mongolia, Private Placement and Appointment of New Director
FIVE STAR DIAMONDS LTD. ANNOUNCES AGREEMENTS TO ACQUIRE NEW COPPER
PORPHYRY PROJECTS IN MONGOLIA, PRIVATE PLACEMENT AND APPOINTMENT OF NEW
DIRECTOR
TORONTO, November 4, 2019 – Five Star Diamonds Ltd. (TSX.V: STAR) (the “Company” or “Five Star
Diamonds”) is pleased to announce that it has entered into agreements to acquire a 100% interest in two highly
prospective porphyry copper projects in southern Mongolia through a combination of work programs, deferred
cash payments and the issuing of STAR shares.
The Company has the rights to acquire a 100% interest in the 150 square kilometer Baruun Tal Copper Project
located in in the World Class South Gobi Porphyry Coppe r Province. The Baruun Tal Copper Project was last
explored by Ivanhoe Mines in 2007 and no exploration h as been undertaken since th at time. The area remains
under explored and highly prospective. Exploration resu lts from Ivanhoe Mines soil, rock chip and trenching
programs are early stage and results are extremely encouraging and show the potential for the possible discovery
of a copper porphyry copper system. Early rock chip sampling returned results up to 14.5% copper and trenching
results returned a best result of 22 meters at 0.8% c opper. The Company is currently compiling past exploration
results with the aim of immediately commencing for the planning of a substantial ground magnetic program and
IP geophysical survey to highlight targets for drilling in early 2020.
The Company has also agreed to acquire a 100% interest in the 2,773 hectare Bayan Undur Copper Project located
in Bayankhongor Province, which comprises four gr anted mining licenses. The Company will undertake a
thorough review of the considerable volume of past exploration including drilling, geochemistry and geophysics
with the aim of identifying new drill targets for 2020.
The Company’s Chairman, Matthew Wood, has consider able experience in Mongolia and was formerly the
founder and executive Chairman of Mongolian coal company, Hunnu Coal Limited. Hunnu Coal was IPO of the
year for all sectors on the ASX in 2010, and its sale for approximately A$500M in 2011 to Banpu PCL was
recognized as the Mines and Money 2012 Deal of the Year. Mr. Wood is also the Chairman of TSX main board
listed precious metals company, Steppe Gold Lim ited. Mr. Wood has extensive experience and many key
relationships in Mongolia, and in 2018 was awarded the Order of the Polar Star, the highest state honour that can
be awarded to a non-citizen of Mongolia.
Completion of the acquisitions is subject to approval of the TSX Venture Exchange.
Finders fees and certain transaction costs will be payable in both acquisitions.
Chairman of Five Star Diamonds, Matthew Wood commented, “We are very excited to announce two new highly
prospective copper porphyry acquisitions in southern Mongolia. While we remain committed to extracting
maximum value for our Brazil diamond assets, we recognize that the capital markets are more receptive to copper
projects. Our group has acquired these new projects on attr active terms, and we are excited to get to work and
build value for our shareholders”.
Private Placement
The Company is proposing to complete a non-brokered private placement of a minimum of 10,000,000 and a
maximum of 20,000,000 units of the Company at an offering price of $0.05 per unit for minimum gross proceeds
of $500,000 and maximum gross proceeds of $1,000,000. Each unit will be comprised of one common share of
the Company and one common share purchase warrant with each warrant exercisable for one common shares at
a price of $0.10 per share for a period of 12 months from closing.
Completion of the offering is subject to the approval of the TSX Venture Exchange.
Debt Settlement
The Company also announces its inten tion to settle amounts owing to certain officers, directors and service
providers of the Company and certain outstanding debt of the Company through the issuance of common shares
of the Company at an implied issue price of C$0.05 to C$0.10 per common share.
Board Appointment
The Company further announces that Jeremy South has been appointed to the Board and the Company has
commenced a search for a new Chief Financial Officer. Mr. South will continue as CFO until a new appointment
is announced.
The technical information contained in this news re lease has been reviewed and approved by Mr. Enkhtuvshin
Khishigsuren, a Qualified Person under National Instrument 43-101 Disclosure Standards for Mineral Projects.
On behalf of the Board
Matthew Wood
Chairman
Five Star Diamonds Limited
+1.647.981.1703
Cautionary Note Regarding Forward-looking Statements
Information set forth in this news release contains forward-looking statements. Although the Company believes
that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. The
Company cautions investors that any forward-looking st atements by the Company are not guarantees of future
results or performance, and that actual results may differ materially from those in forward looking statements as
a result of various factors, many of which are beyond the Company’s control. Such factors include, among other
things: variations in the nature, qua lity and quantity of any mineral depos its that may be located, significant
downward variations in the market price of any mine rals produced, the Company’ s inability to obtain any
necessary permits, consents or authorizations required for its activities, to produce minerals from its properties
successfully or profitably, to continue its projected growth , to raise the necessary capita l or to be fully able to
implement its business strategies. Accordingly, actual and future events, conditio ns and results may differ
materially from the estimates, beliefs, intentions and e xpectations expressed or implied in the forward-looking
information. Except as required under applicable securities legislation, the Company undertakes no obligation to
publicly update or revise forward-looking information.
NEITHER 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.