Canstar Signs Memorandum of Agreement on Claims Adjacent to Mary March Property
TORONTO, ONTARIO, Jan 18, 2010 - The Directors of Canstar Resources Inc. (TSX VENTURE: ROX) are pleased to announce that the Company has signed a Memorandum of Agreement with On-Strike Gold Inc., a private company, to explore Canstar’s mineral claims (“The Claims”), adjacent to Canstar’s Mary March property in the Buchans area of Newfoundland and Labrador.
The 37 claim property, 100% owned by Canstar, is located immediately adjacent to the east and north along the geological trend of the Mary March property. The Mary March property hosts several areas of high grade base and precious metals, VMS type mineralization.
These claims are not involved in the Mary March property dispute between the Mining Recorder’s office and Vinland Resources.
On-Strike has 30 days to complete due diligence on the claims at which time it may proceed to a Mining Option Agreement (“MOA”) with Canstar to earn 50% interest in the claims on the following terms:
- On signing MOA, On-Strike will pay Canstar $25,000 and issue 500,000 shares of On-Strike to Canstar.
- On or before the 1st anniversary On-Strike will pay $50,000 in cash to Canstar.
- On, or before the 2nd anniversary On-Strike will pay $100,000 in cash to Canstar.
- On-Strike will incur exploration expenditures on the claims as follows;
In 1st year - $100,000
In 2nd year - $250,000
In 3rd year - $500,000
Upon earning 50% interest, On-Strike will enter into a 50/50% Joint Venture agreement with Canstar on the claims with industry standard terms.
Harry Hodge, P.Eng. Chairman of Canstar states, “We are pleased to welcome a partner to combine our exploration efforts and expenditures on these well-located, highly prospective and under-explored claims. Together with the Mary March property it will provide increased exploration exposure for Canstar in this area of favourable geology and known high grade base and precious metals mineralization.”
On behalf of the Board of Directors
Harry J. Hodge, P.Eng.
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.
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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Contacts: Canstar Resources Inc.
Karen Willoughby Manager, Corporate Affairs
Harry J. Hodge, P.Eng. Chairman