Business
Blue Star Gold Corp. Exercising Option for 100% of Ulu Gold Project in Nunavut and Announcing Private Placement with Insider Participation and Related Transactions
Vancouver, British Columbia--(Newsfile Corp. - July 29, 2019) - Blue Star Gold Corp. (TSXV...
About this update from Blue Star Gold Corp.
[{"type":"text","content":"Blue Star Gold Corp. Exercising Option for 100% of Ulu Gold Project in Nunavut and Announcing Private Placement with Insider Participation and Related TransactionsVancouver, British Columbia--(Newsfile Corp. - July 29, 2019) - Blue Star Gold Corp. (TSXV: BAU) (\"Blue Star\" or the \"Company\") is pleased to report it is exercising its option to acquire a 100% undivided interest in the Ulu Gold Property (the \"Ulu'). To achieve this, Blue Star has amended its previous option agreement dated the 8th of January, 2018 with Mandalay Resources Corporation (\"Mandalay\") and the terms of the amended agreement may be summarized as follows:Blue Star's consideration to acquire 100% interest in the Ulu is:To pay $450,000 in cash to Mandalay in lieu of issuing 15 million Blue Star common shares, with such payment being made upon the closing of the transfer of the Ulu and associated permits.Assume all environmental liabilities, past and present, of the Ulu property, including all current and future obligations to any regulatory agency.To arrange for a third party cash payment of $200,000 for the 5 million Blue Star common shares presently held by Mandalay upon the Closing of the property transfer.Mandalay's consideration is:To transfer to Blue Star a 100% interest in the Ulu and associated permits upon regulatory approval of the transfers.Assignment of its rights to the remediation security, currently standing at approximately $1.68 million and held by the Nunavut Water Board.To transfer all right, title and interest in all structures, property and equipment located on the property.Stephen Wilkinson, CEO and President commented, \"Blue Star's management and consultant advisors visited the Ulu during the first week of July to inspect the site and its condition having been partially remediated by Mandalay. Upon giving our written satisfaction as to the state of remediation to Mandalay, we have been able to quickly conclude our negotiations for the Amendment. Blue Star is now excellently positioned to move to its next stage of corporate growth with the acquisition of an excellent, advanced gold project immediately adjacent to our 8,015 hectare (\"ha\") Hood River gold property.\"The Company has also committed to the land owners, the Kitikmeot Inuit Association (the \"KitIA\"), to improve the remediation process so as to include a more thorough ...