Polar Star Mining executes sale and purchase agreement for sale of Chepica Mine
12.12.2013 | CNW
TORONTO, Dec. 12, 2013 - Polar Star Mining Corp. (TSX: PSR) (the "Company"), a Toronto-based company focused on copper and gold exploration and mine development with operations in Chile, announced that it has entered into a sale and purchase agreement with Xtract Resources Plc (Xtract), an AIM listed company for, amongst other things, the sale of its Chepica gold and copper mine located 300km south of Santiago Chile. Under the terms of the agreement that is expected to close in January 2014, Xtract will acquire 100% of the shares of a Barbados subsidiary of the Company. This Barbados subsidiary owns 100% of a Chilean entity that holds an option agreement to acquire 100% of the Chepica gold and copper mine as well as the adjoining Talca exploration licenses and the Mejillones Phosphate Property which was previously included in a separate joint venture agreement, entered into between the Company and Xtract in July 2013.
Consideration for the transaction includes 500,000,000 Xtract common shares valued at £1,250,000. In addition Xtract will assume approximately USD$1.25 million of liabilities associated with the Chilean entity.
The transaction is conditional upon, among other things, a successful financing by Xtract of not less than £1.5 million, the issue of a title opinion confirming the title ownership of the Chepica Mine interest and the Talca licenses and certain regulatory requirements of the AIM exchange.
Colin Bird, Director and Chief Executive Officer of Polar Star is also Executive Chairman of Xtract. Mr. Bird has an insignificant interest in the issued share capital of Polar Star and Xtract and recused himself from any involvement in the transaction.
About Polar Star Mining Corporation
Polar Star Mining Corp. ("PSR") is a TSX listed exploration and development company with a focus on building shareholder value in Chile. The Company's strategy is to conduct exploration programs at its flagship Montezuma property and advance its large portfolio of other world class projects in Chile through joint ventures.
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Contact
Polar Star Mining Corp.
Charlie Cannon-Brookes, Director
Email: cbrookes@agam.co.uk
Telephone: +44 207 389 5017
For more information about Polar Star Mining Corporation, please visit: www.polarstarmining.com