VANCOUVER, B.C. – March 1, 2017 – Desert Star Resources Ltd. (“Desert Star” or the “Company”) is pleased to announce that it has closed its non-brokered private placement of units of the Company (the “Private Placement”) for gross proceeds of $55,000 by the sale of 550,000 Units (each a “Unit”) at $0.10 per Unit. Each Unit consists of one common share of the Company and one transferable common share purchase warrant (“Warrants”). Each Warrant is exercisable into one common share in the capital of the Company (“Warrant Share”) for a period of 18 months from the date of issuance, at an exercise price of $0.20 per Warrant Share.
An insider of the Company participated in the Private Placement and subscribed for 100,000 Units. Participation of an insider of the Company in the Private Placement constitutes a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company did not file a material change report 21 days prior to the closing of the Private Placement as the details of the participation of insiders of the Company had not been confirmed at that time.
The proceeds of the Private Placement will be used for general working capital purposes. The Units and underlying securities are subject to a four month hold period.
On behalf of the Board of
DESERT STAR RESOURCES LTD.
President and CEO, Desert Star Resources Ltd.
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.