Vancouver, B.C., July 28, 2016.Desert Star Resources Ltd. (TSX-V: DSR) (“Desert Star” or the “Company”) is pleased to announce that its Board of Directors has approved proposed changes to the Company’s share structure to consolidate its issued and outstanding common shares, and any securities convertible into common shares, on a two-for-one basis.
Under the proposed consolidation, two existing common shares will be consolidated into one new common share. Outstanding convertible securities will be adjusted accordingly in terms of number and exercise price. The Company currently has 64,691,649 common shares issued and outstanding, which will be reduced to approximately 32,345,824 common shares. Fractional shares remaining after giving effect to the consolidation will be cancelled without compensation, such that the holdings of each shareholder will be rounded down to the nearest whole number of post-consolidation common shares.
The Company’s name will remain as “Desert Star Resources Ltd.”
The Company’s articles permit the Board of Directors to authorize a consolidation. The Board of Directors determined that consolidation is necessary to make Desert Star’s share structure more facilitative for mineral project or acquisition transactions.
The consolidation is subject to the acceptance of the TSX Venture Exchange.
About Desert Star
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.
Cautionary Note Regarding Forward-Looking Statements
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.
This news release contains certain statements that may be deemed “forward-looking statements”. 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. Although Desert Star believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, Desert Star’s ability to raise sufficient capital to fund its obligations under its property option agreements, to maintain its mineral tenures and concessions in good standing, to explore and develop its projects, to repay its debt and for general working capital purposes; changes in economic conditions or financial markets; the ability of Desert Star to obtain the necessary permits and consents required to explore, drill and develop the projects and if obtained, to obtain such permits and consents in a timely fashion relative to Desert Star’s plans and business objectives for the projects; the general ability of Desert Star to drill test its projects and find mineral resources; if any mineral resources are discovered or acquired, the Company’s ability to monetize any such mineral resources; and changes in environmental and other laws or regulations that could have an impact on the Company’s operations. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of Desert Star’s management on the date the statements are made. 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.