Canstar Resources Announces Close of Final Tranche of $2.0M Private Placement

On October 1, 2020 Canstar Resources Inc. (“Canstar” or the “Company”) announced that  it had closed the second and final tranche (the “Second Tranche”) of the non-brokered private placement announced on September 2, 2020 (the “Offering”).

The Second Tranche consisted of the sale of 9,523,810 units (“Units”) at a price of $0.1575 per Unit for aggregate gross proceeds of $1,500,000.

The first tranche of the Offering, which closed on September 15, 200, consisted of the sale of 4,761,920 units (each a “Part & Parcel Unit”) at a price of $0.105 per Part & Parcel Unit for gross proceeds of $500,001.60.

The Company intends to use the net proceeds raised from the Second Tranche for general corporate purposes, working capital, and exploration expenses on the Company’s properties in Newfoundland, including Buchan’s/Mary March, Daniel’s Harbour, and Golden Baie.

Canstar Resources is a mineral exploration and development company focused on creating shareholder value through discovery and development of economic mineral deposits in Newfoundland and Labrador, Canada. Canstar is in the process of completing an option agreement to acquire a 100% interest in the Golden Baie Project in south Newfoundland, a large claim package (660 km²) with recently discovered, multiple outcropping gold occurrences. The Company also holds the Buchans-Mary March project and other mineral exploration properties in Newfoundland. Canstar Resources is based in Toronto, Canada and is listed on the TSX Venture Exchange and trades under the symbol ROX-V.

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