Chairman's Message 7 31 2012
TO OUR SHAREHOLDERS,
Pursuant to our recent news release (July 30th, 2012), on behalf of the Board of Directors, I am pleased to report that Canstar has formally completed documentation of our earn-in from Freeport-McMoRan (formerly Phelps Dodge Corporation) of 50% interest in the Mary March property.
Xstrata Canada Corporation holds the other 50% interest.
A special meeting has been called between Canstar and Xstrata for August 13th, 2012 to review Canstar’s proposed exploration program and discuss the requirements and terms of a Joint Venture. According to the terms of the original agreement, Xstrata will have 30 days from that date to advise Canstar if it wishes to proceed with the joint venture and contribute 50% of future exploration expenditures. Canstar will be the operator of the joint venture.
Canstar directors are very pleased that the Company has cleared another important hurdle in its determined effort to conduct comprehensive exploration of the highly prospective base and precious metal, Mary March property.
Again, we appreciate the continued support of our loyal shareholders and their patience over the long period of time it has taken to resolve these complex agreements.
We look forward with enthusiasm to commencement of exploration.
Harry J. Hodge, P.Eng.