Vancouver, B.C., September 25, 2014: Desert Star Resources Ltd. (TSX-V: DSR) (“Desert Star” or the “Company”) is pleased to announce that on September 23, 2014 it entered into an agreement to amend the exploration and development agreement with Pilot Gold (USA) Inc. (“Pilot Gold”), in respect of an option on the Anchor Gold project. The initial exploration and development agreement dated September 16, 2013 (the “Option Agreement”) was previously announced by the Company in a news release dated September 17, 2013.
The Company and Pilot Gold have agreed to extend the exploration expenditures required to be made by the Company in consideration for the Company issuing to Pilot Gold an additional 100,000 common shares of the Company. Accordingly, the exploration commitments and expenditures to be made by Desert Star were extended as follows:
- Within 24 months from the effective date, drill 1,500 metres aimed at the Devils Gate formation; and
- Within 30 months from the effective date, incur exploration expenditures of $2 million (including the exploration expenditures incurred for the initial drilling).
The remaining terms of the Option Agreement, including other consideration shares to be issued by the Company to Pilot Gold in order to earn a 51% interest in the Anchor Gold project, remain unchanged.
Completion of the amendment to the Option Agreement and the issuance of the additional 100,000 common shares to Pilot Gold is subject to approval of the TSX Venture Exchange.
About Desert Star Resources Inc.
Desert Star is a Vancouver-based mineral exploration company focused on the identification, acquisition and development of copper and gold projects located in top-tier mineral belts in the southwestern United States that contain significant historical production, existing mining infrastructure and an established mining culture.
President and CEO, Desert Star Resources Ltd.
For further information regarding Desert Star, please email email@example.com or visit our website at www.desertstar.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain statements that may be deemed “forward-looking statements” with respect to Desert Star within the meaning of applicable securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur, or describes a goal or strategy. Although Desert Star believes the expectations expressed in such forward-looking statements are based on reasonable assumptions and estimates, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward-looking statements.
Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from estimated results. Such risks and uncertainties include, but are not limited to, Desert Star’s ability to raise sufficient capital to fund its obligations under the Option Agreement as amended, incur the minimum annual expenditure requirements, issue the common shares as consideration for the option under the Option Agreement as amended and otherwise earn-in its interest in the Anchor Project; changes in economic conditions or financial markets; the ability of Desert Star to obtain the necessary permits, licenses, approvals and consents required to explore and develop the Anchor Project; and changes in environmental, mining and other laws or regulations that could have an impact on the Company’s operations. Many assumptions are based on factors and events that are not within the control of Desert Star and there is no assurance they will prove to be correct. Forward-looking statements are based on the beliefs, estimates and opinions of Desert Star’s management on the date the statements are made, and except as required by law, Desert Star undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change. Although Desert Star has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Readers are referred to the additional risk factors discussed in Desert Star’s financial statements, including management’s discussion and analysis, available under Desert Star’s SEDAR profile at www.sedar.com.