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Message: Vanstar Mining Resources Inc. Completes $756,600 Initial Public Offering
| May 8, 2009 |
| Vanstar Mining Resources Inc. Completes $756,600 Initial Public Offering |
| LA PRAIRIE, QUEBEC--(Marketwire - May 8, 2009) - THIS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. Vanstar Mining Resources Inc. ("Vanstar") (TSX VENTURE:VSR) and Vantex Resources Ltd. ("Vantex") (TSX VENTURE:VTX) are pleased to announce that Vanstar has completed today its previously-announced initial public offering of 262 A units ("A Units") at a price of $1,050 per unit and 963 B units ("B Units") at a price of $500 per unit , for total gross proceeds of $756,600. Vanstar's common shares (the "Common Shares") have commenced trading today on the TSX Venture Exchange under the symbol "VSR". Each A Unit is comprised of 5,600 "flow-through" Common Shares at a price of $0.15 per share and 2,100 Common Shares at a price of $0.10 per share. Each B Unit is comprised of 5,000 Common Shares at a price of $0.10 per share and 5,000 Common Share purchase warrants. Each Common Share purchase warrant entitles its holder to purchase one additional Common Share of Vanstar at a price of $0.13 per share for a period of two years. The net proceeds from the initial public offering ("IPO") will be used by Vanstar for exploration work on its Patica property (the "Patica property"), and for working capital and general corporate purposes. Following the closing of the initial public offering, there are 10,132,400 Common Shares and 4,815,000 Common Share purchase warrants issued and outstanding of Vanstar. Vanstar was incorporated following a decision of Vantex to create a new corporate entity within its group to which it has transferred a mining exploration property located in the James Bay region, being the Patica property, thus allowing Vantex to focus its exploration efforts on properties located in the Abitibi-Temiscamingue region. Pursuant to an agreement entered into between Vantex and Vanstar, Vanstar has agreed to purchase the Patica property by issuing in favour of Vantex at the closing of the IPO, 3 300 000 Common Shares at a price of $0.10 each for a total aggregate purchase price of $330,000. Immediately following the closing of the IPO, Vantex will directly own 3 300 000 Common Shares representing 32.5% of the issued and outstanding Common Shares of Vanstar. |
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