CALGARY, ALBERTA–(Marketwired – Jan. 5, 2016) –
Groundstar Resources Limited (TSX VENTURE:GSA) (the “Company“) is pleased to announce that it has closed its previously announced financing through the issuance of 4,440,000 common shares in the capital of the Company issued on a “flow-through” basis within the meaning of the Income Tax Act (Canada) (the “Flow-Through Shares“) at a price of $0.05 per Flow-Through Share by way of a non-brokered private placement for total gross proceeds of $222,000 (the “Offering“). The Company paid cash finders’ fees totaling $12,040 in connection with the private placement and issued broker warrants exercisable into a total of 240,800 common shares in the capital of the Company for a period of 18 months from the closing date at an exercise price of $0.08 per share.
The Company expects to use the net proceeds from the Offering to further the exploration and development activities of its oil and gas properties. The proceeds received by the Company from the sale of the Flow-Through Shares are expected to be used to incur eligible Canadian Exploration Expenses (“CEE“) which will be renounced in favour of subscribers for the 2015 taxation year.
The Flow-Through Shares were issued on a private placement basis and are subject to a statutory hold period of four months and a day from the closing date of the Offering, expiring on May 1, 2016.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.