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Canstar Enters into Binding Letter of Intent for Golden Baie Transaction, Securing Cash, Equity, Royalty and $5M in Work Commitments to Accelerate Gold-Antimony Exploration in Newfoundland
Toronto, Ontario--(Newsfile Corp. - February 17, 2026) - Canstar Resources Inc. (TSXV: ROX) (OTCI...
About this update from Canstar Resources Inc.
[{"type":"text","content":"Canstar Enters into Binding Letter of Intent for Golden Baie Transaction, Securing Cash, Equity, Royalty and $5M in Work Commitments to Accelerate Gold-Antimony Exploration in NewfoundlandToronto, Ontario--(Newsfile Corp. - February 17, 2026) - Canstar Resources Inc. (TSXV: ROX) (OTCID: CSRNF) (\"Canstar\" or the \"Company\") has executed a binding Letter of Intent with Churchill Resources Inc. (\"CRI\") for an option agreement that unlocks the value of its Golden Baie gold-antimony project while strengthening Canstar's capital position and strategic focus. Under the option, which will allow CRI to earn a 100% interest in Golden Baie, Canstar will receive up to 9.99% ownership in CRI through fixed-percentage share issuances, retain a 0.5% perpetual royalty on Golden Baie, secure approximately $208,167 in cash reimbursement, eliminate approximately $600,000 in 2026 holding obligations, and benefit from a minimum $5 million work commitment - including $2M in the first 12 months - to aggressively advance the asset. Upon execution of the definitive option agreement, Canstar will receive an initial issuance of 15,834,097 common shares of CRI, representing approximately 5.0% of CRI's issued and outstanding shares on a post-issuance basis. Based on CRI's closing share price of $0.14/share on February 13, 2026, the initial tranche has an indicative current market value of approximately $2.2 million. The remaining 4.99% ownership interest will be delivered in four additional tranches over 24 months, each calculated as a fixed percentage of CRI's issued and outstanding shares at the time of issuance. Juan Carlos Giron Jr., Canstar's President & CEO, stated: \"This is a strong and strategic agreement that delivers a compelling win-win for Canstar and Churchill shareholders. Canstar benefits from approximately $3.3 million in near-term value - at least $2.4 million of which is expected within 30 days of TSXV approval and definitive agreement execution - including approximately $800,000 in hard dollar benefits for the treasury. The Golden Baie project cements Churchill's position as a leading gold-antimony explorer in a Tier-1 mining jurisdiction, and because the share consideration Canstar will receive is based on fixed ownership percentages in CRI rather than a fixed dollar amount, the actual value realized by Canstar will evolve along...