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Blue Star Announces TSX Venture Exchange Acceptances of Its Acquisition of the Ulu Gold Property, Its $3,000,000 Units Offering and to Issue 7,871,084 Bonus Shares to Dr. Ing Georg Pollert for a Loan of $2,435,742 for the Ulu Remediation Accounts
Vancouver, British Columbia--(Newsfile Corp. - December 2, 2019) - Blue Star Gold Corp. (TSX...
About this update from Blue Star Gold Corp.
[{"type":"text","content":"Blue Star Announces TSX Venture Exchange Acceptances of Its Acquisition of the Ulu Gold Property, Its $3,000,000 Units Offering and to Issue 7,871,084 Bonus Shares to Dr. Ing Georg Pollert for a Loan of $2,435,742 for the Ulu Remediation AccountsVancouver, British Columbia--(Newsfile Corp. - December 2, 2019) - Blue Star Gold Corp. (TSXV: BAU) (\"Blue Star\" or the \"Company\") is pleased to report the TSX Venture Exchange (the \"Exchange\") has accepted for filing the amendment agreement among Blue Star and Mandalay Resources Corp. and its subsidiary, Lupin Mines Inc. (collectively, \"Mandalay\") dated July 19, 2019, under which the terms of the previous Ulu option agreement as earlier approved by the Exchange were amended. Pursuant to the terms of the amending agreement and to acquire a 100-per-cent interest in the Ulu Gold Property, Blue Star will:Pay $450,000 to Mandalay in lieu of issuing 15 million common shares of Blue Star, with such payment being made upon the closing of the transfer of the Ulu Gold Property and associated permits;Assume all environmental liabilities, past and present, of the Ulu Gold Property, including all current and future obligations to any regulatory agency; and,Arrange for a third-party cash payment of $200,000 for the five million common shares of Blue Star presently held by Mandalay upon the closing of the Property transfer.Under its amended obligations, Mandalay will:Transfer to Blue Star a 100-per-cent interest in the Ulu Gold Property and associated permits upon regulatory approval of the transfers;Assign all its rights to the remediation security, currently standing at approximately $1.68-million and held by the Nunavut Water Board; and,Transfer all right, title and interest in all structures, property and equipment located on the Ulu Gold Property.The Ulu Gold Property consists of the renewable 21-year Lease No: NL3563 with an area of approximately 947 ha and an expiry date of Nov 18, 2038. The Property hosts an advanced gold project that between 1989 and 2006 saw significant exploration and development. The past work includes approximately 1.7 km of underground development and approximately 351 diamond drill holes that produced 135,713 m of core. Supplementing the exploration data, metallurgical testing by the Company on the Flood Zone gold mineralization has shown that gold is recoverabl...