Canstar Resources Announces Definitive Agreement with Freeport-McMoRan of Canada Limited to Complete Purchase of a Purchase Option for 50% of the Mary March Property, Newfoundland
Toronto, Ontario, April 19, 2012 - The directors of Canstar Resources Inc. (Canstar) (TSX.V: ROX) wish to announce that the Company has, subject to regulatory approval and closing, entered into a definitive agreement with Freeport-McMoRan of Canada Limited (formerly Phelps Dodge Corporation of Canada Limited) (FMCL) to complete Canstar’s acquisition of FMCL’s option (Option) to acquire a 50% joint venture interest in the Mary March mineral property located in the Buchans area of Newfoundland And Labrador pursuant to the letter of intent entered into by Canstar and FMCL in 2003.
The remaining 50% joint venture interest is held by Noranda Mining and Exploration Inc. (part of the Xstrata group of companies) (Xstrata), who is also the optionor. Upon exercise, the Option grants the optionee a right of first refusal on Xstrata’s 50% joint venture interest in the Mary March property. Canstar is the Operator of the joint venture.
As previously reported, the Mary March property is located in the Buchans area of Newfoundland and Labrador, 20 kilometers northeast of the formerly producing Buchans mine (16.2 million tons @ 14.50 % zinc, 7.56 % lead, 1.33 % copper, 126 g/t silver and 0.9 g/t gold ). Previous drilling on the Mary March property occurring between 1999 and 2000, had discovered Buchans type massive sulphides, with one hole averaging 10.33% zinc, 1.62% lead, 0.66% copper, 118 g/t silver and 4.1 g/t gold over 9.23 metres. No exploration has been carried out on this zone since 2000.
The Company has definitive plans to conduct a comprehensive exploration program over this property, including drilling and geophysics, as soon as the purchase of FMCL’s Option is completed and formal arrangements with Xstrata have been finalized.
On behalf of the directors I would like to express our appreciation to our shareholders for their patience with the delay in moving forward with the property exploration plans.
On behalf of the Board of Directors
Harry J. Hodge, P. Eng.
Harry J. Hodge, P. Eng.
Manager, Corporate Affairs
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. This News Release includes certain “forward-looking statements”. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.