Weststar Resources
www.weststarresources.com
www.weststarresources.com
Weststar Resources Corp. (WER: TSX-V) is a mineral exploration company focused on discovering and advancing mineral properties with known historical resources . By utilizing modern geological science to evaluate historical known discoveries and deposits, Weststar offers the potential for rapid corporate growth and asset appreciation. Weststar's portfolio is currently focused in Canada and is primarily invested in coal and copper-gold properties.
Weststar Resources Corp acquires interest in Ellesmere Island Coal licenses
It is not very common to see acquisitions these days. Most of the mining companies appear to be in the shadows in the face of thorny market conditions. It is therefore refreshing to see companies such as Canadian Venture and Frankfurt listed (TSX-V: WER, Frankfurt: HN3) Weststar Resources Corp to take the initiative to actually go out and acquire new licences. In what could be a significant development, the company has acquired an 80% interest in Hunter Exploration Group's ("Hunter") Ellesmere Island Coal Licenses.
The acquisition consists of two areas totaling approximately 564,800 acres within a combination of 16 coal license applications and pending permits located on western Ellesmere Island, Nunavut Territory. These are the Strathcona Fiord and Fosheim Peninsula areas, which are located approximately 160 kilometers southeast and 25 kilometers east of Eureka weather station, respectively. Both areas are underlain by coal bearing strata of the Tertiary Eureka Sound Group. The Group is host to coal throughout the Canadian Arctic Islands and noted as containing "the greatest potential for coal deposits of any unit in the Archipelago" by Ricketts and Embry (1984) in their paper 'Summary of Geology and Resource Potential of Coal Deposits in the Canadian Arctic Archipelago.
Immediate development efforts are expected at these newly acquired licences and the Company is reviewing historic data to outline a programme of surface exploration that will begin by mapping and sampling of the coal bearing sections. The surface exploration programme is planned to start in the summer of 2009 to define drill targets in areas amenable to low strip ratio, open pit mining.
Chris Verrico, Director, states, "The geographic proximity to the recently acquired Bache Peninsula coal licenses fits well with the Company's vision of a tidewater coal operation, with coal destined for European and potentially Asian coal markets. We envision branding the Company's subsidiary, Canadian Sovereign Coal Corporation as a Northern partner to provide a valuable resource and jobs within the Nunavut Community. To that end, the Company will spend the late spring and summer season reviewing all the historic data working towards completion of an NI43-101 compliant report to recommend further work on project logistics and development."
Cost of the acquisition includes cash payments of $100,000, and issuance of 2,000,000 units. Each unit consists of one common share and one non-transferable share purchase warrant, each warrant exercisable into an additional common share for a period of one year from the date of issue. Payments and unit issuances will follow a schedule which allows Weststar to make them progressively, thus causing less cash burden. Weststar has a right to purchase 50% of the royalty (1%) for a $1,000,000.00 cash payment. Hunter's 20% interest in the Property will be carried until the completion of a positive bankable Feasibility Report.
The acquisition consists of two areas totaling approximately 564,800 acres within a combination of 16 coal license applications and pending permits located on western Ellesmere Island, Nunavut Territory. These are the Strathcona Fiord and Fosheim Peninsula areas, which are located approximately 160 kilometers southeast and 25 kilometers east of Eureka weather station, respectively. Both areas are underlain by coal bearing strata of the Tertiary Eureka Sound Group. The Group is host to coal throughout the Canadian Arctic Islands and noted as containing "the greatest potential for coal deposits of any unit in the Archipelago" by Ricketts and Embry (1984) in their paper 'Summary of Geology and Resource Potential of Coal Deposits in the Canadian Arctic Archipelago.
Immediate development efforts are expected at these newly acquired licences and the Company is reviewing historic data to outline a programme of surface exploration that will begin by mapping and sampling of the coal bearing sections. The surface exploration programme is planned to start in the summer of 2009 to define drill targets in areas amenable to low strip ratio, open pit mining.
Chris Verrico, Director, states, "The geographic proximity to the recently acquired Bache Peninsula coal licenses fits well with the Company's vision of a tidewater coal operation, with coal destined for European and potentially Asian coal markets. We envision branding the Company's subsidiary, Canadian Sovereign Coal Corporation as a Northern partner to provide a valuable resource and jobs within the Nunavut Community. To that end, the Company will spend the late spring and summer season reviewing all the historic data working towards completion of an NI43-101 compliant report to recommend further work on project logistics and development."
Cost of the acquisition includes cash payments of $100,000, and issuance of 2,000,000 units. Each unit consists of one common share and one non-transferable share purchase warrant, each warrant exercisable into an additional common share for a period of one year from the date of issue. Payments and unit issuances will follow a schedule which allows Weststar to make them progressively, thus causing less cash burden. Weststar has a right to purchase 50% of the royalty (1%) for a $1,000,000.00 cash payment. Hunter's 20% interest in the Property will be carried until the completion of a positive bankable Feasibility Report.
