Business
Megastar closes first tranche of private placement
Megastar closes first tranche of private placement.
About this update from Madoro Metals Corp
[{"type":"text","content":"\n\n\n\n\nTSX-V: MDV\n\nVANCOUVER, Jan. 3 /CNW/ - Megastar Development Corp. (TSX-V: MDV) is\npleased to announce that it has completed the flow-through share portion of\nthe non-brokered private placement announced on December 23, 2005.\nSubject to TSX Venture Exchange approval, the company will issue 794,000\nflow-through units at a price of 15 cents per unit for gross proceeds of\n$119,100, being an increase from the $90,000 previously announced on\nDecember 23, 2005. Each unit will consist of one share and one share purchase\nwarrant; two warrants will entitle the holder to purchase one additional \nnon-flow-through common share of the company at a price of 20 cents for a\nperiod of one year. The shares issued under the private placement will be\nsubject to a four-month hold period from the date of TSX Venture Exchange\napproval.\nThe proceeds from the private placement will be used by Megastar for\nexploration purposes primarily on its 100% owned RALLEAU property located in\nRalleau Township, approximately 40km east of QuDevillon, Quebec. The project\narea consists of 12 designated cells covering an area of 676 hectares\naccessible via a series of forestry roads emanating from the Val d'Or-\nChibougamau provincial road and is situated about 20km southeast of the\nLanglois mine, currently being developed by Breakwater (TSX: BWR). For a map\nof the project area, refer to\nwww.megastardevelopment.com/properties/ralleau.php . If warranted, a portion\nof the proceeds may be incurred on other Quebec mineral properties in which\nthe Company holds an interest.\nThe second tranche of the non-brokered private placement is anticipated\nto close on or about January 20, 2006.\n\n\nON BEHALF OF THE BOARD OF DIRECTORS\n\n\"Dusan Berka\"\n\nDusan Berka, P. Eng.\nPresident & CEO\n\n\nTHE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT\nRESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.\n\n\n\n","length":1972,"tagName":"div"}]