TORONTO, ONTARIO--(Marketwire - Feb. 23, 2010) - The Directors of Canstar Resources Inc. (TSX VENTURE:ROX) are very pleased to announce that the Company has signed a Mining Option Agreement ( MOA ) with On-Strike Gold Inc., on Canstar's 37 claim property located immediately east and north of, and along the geological trend of, Canstar's Mary March property.
Following are terms of the agreement:
On-Strike Gold can earn 50% interest in the claims for the following considerations.
- Cash payments of $ 175,000 - $25,000 on signing agreement (paid), $50,000
on the first anniversary of the agreement, $100,000 on the second
anniversary.
- 500,000 On-Strike shares (currently being issued).
- Exploration Expenditures - $100,000 in the first year, $250,000 in the
second year, $500,000 in the third year.
On earning 50% interest, On-Strike will enter into a joint venture agreement with industry standard terms.
The Directors feel that this agreement is very important for Canstar's exploration plans for this area. It provides for comprehensive exploration on these well located and highly prospective claims while allowing Canstar to focus on the Mary March property, pending the anticipated resolution of the property title dispute.
The Company is currently awaiting the filing of a Factum by Vinland Resources in support of its appeal in the Mary March property dispute with the Mineral Recorder's Office of the Government of Newfoundland and Labrador.
On behalf of the Board of Directors
Harry J. Hodge, P.Eng., Chairman
This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Canstar, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Canstar's expectations are exploration risks detailed herein and from time to time in the filings made by Canstar with securities regulators.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canstar Resources Inc.
Karen Willoughby
Manager, Corporate Affairs
1-866-365-4724
kwilloughby@canstarresources.com
or
Canstar Resources Inc.
Harry J. Hodge, P.Eng.
Chairman
416-363-4376
hjhodge@geocanex.com
www.canstarresources.com
