Business
Canstar Options Golden Baie; Will Receive Initial 15.8M Shares and $208K Cash, with Additional Equity Tranches to Follow
Toronto, Ontario--(Newsfile Corp. - March 23, 2026) - Canstar Resources Inc. (TSXV: ROX) (OTCID: ...
About this update from Canstar Resources Inc.
[{"type":"text","content":"Canstar Options Golden Baie; Will Receive Initial 15.8M Shares and $208K Cash, with Additional Equity Tranches to FollowToronto, Ontario--(Newsfile Corp. - March 23, 2026) - Canstar Resources Inc. (TSXV: ROX) (OTCID: CSRNF) (\"Canstar\" or the \"Company\") is pleased to announce that, further to its press release dated February 17, 2026, it has executed the definitive option agreement (the \"Agreement\") with Churchill Resources Inc. (\"CRI\"). The Agreement is effective as of March 20, 2026, and grants CRI the right to earn a 100% interest in Canstar's Golden Baie gold-antimony project located in Newfoundland (the \"Golden Baie Project\").In connection with the execution of the Agreement, and subject to final approval of the TSX Venture Exchange (the \"TSXV\") - which the Company expects to receive shortly - and other customary conditions. Canstar will receive the following consideration within three business days of such approval:Cash Payment: A cash payment of approximately $208,167, representing reimbursement of existing cash bonds posted on the Golden Baie Project.Initial Share Issuance: 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 $0.10 per share on March 20, 2026, the initial tranche has an indicative market value of approximately $1.6 million. These shares are subject to applicable statutory hold periods.The Agreement provides for Canstar to receive up to an additional 4.99% ownership in CRI, delivered in four subsequent tranches of approximately 1.25% each over 6 month intervals during the 24-month option period. In accordance with TSXV requirements, each 1.25% tranche is subject to a maximum issuance of 7,520,000 shares per tranche, and the aggregate maximum number of CRI shares issuable to Canstar under the Agreement is 45,914,097 shares. The actual value of the initial share consideration, as well as the value of all future tranches, will be determined by CRI's market capitalization at the time of each respective issuance, as each tranche is calculated as a percentage of CRI's then-outstanding shares. This structure provides Canstar with direct economic leverage to the advancement of the Golden Baie Project.Summary of Additional Key TermsRoyalty: Canstar retains a 0.5% net smelter return (\"NSR\"...