Megastar Development Closes $672,600 Financing

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[{"type":"text","content":"Megastar Development Closes $672,600 FinancingVANCOUVER, BC / ACCESSWIRE / May 8, 2019 / Megastar Development Corp. (\"Megastar\", or the \"Company\") (TSX-V: MDV; Frankfurt: M5QN), an early stage mineral exploration company focused on its recently optioned properties in Oaxaca, Mexico, is pleased to announce that it has closed on a financing in the amount of $672,600 by way of non-brokered private placement. Under the terms of the placement, Megastar has issued 11,210,000 units at a price of $0.06 per unit. Each unit is comprised of one common share of the Company and one non-transferable share purchase warrant. Each warrant will allow the holder the ability to purchase an additional common share of the Company at a price of $0.10. The warrants are good for a period of 24 months, however, should the common shares close at or above $0.20 for a period of 10 consecutive days, the Company may accelerate the expiry date of the warrants to 30 days from such notice.The proceeds of the financing will be used to advance exploration on multiple properties within the Oaxaca, Mexico Au-Ag belt as optioned from Minera Zalamera S.A. de C.V. in an agreement reached in August of 2018 (see press release dated August 9, 2018). Mr. David M. Jones, President of Minera Zalamera and member of the board of directors of Megastar, has 40 years experience in mineral exploration and a very successful track record in Mexico, which includes the discovery of the Los Filos deposit (Leah Gold ) and, most recently, the targeting that directly led to discovery of Gold Resource Corp.'s Switchback Mine. Exploration is focussed on high-grade Au-Ag deposits similar to those of Fortuna Silver's (\"FVI\" on TSE) San Jose mine, and Gold Resource Corp's (\"GORO\" on NYSE) Arist-Switchback and Alta Gracia mines.\"With working capital now in place, we are very excited about the prospects of advancing preliminary work done on these properties,\" said Dusan Berka, Megastar's CEO. \"David recently returned from Mexico where he deployed a team of Oaxaca-savvy geologists with the goal of efficiently generating exploration targets for drill testing. Oaxaca has shown itself to be an area of interest and, producing mines such as Fortuna Silver's San Jose mine and Gold Resources' Switchback mine are examples of the potential in the region.\" Mr. Berka concludes: \"On behalf of th...

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