Polar Star Acquires Additional 5% Equity Interest in Chepica Mine
August 12 2008 - 9:15AM
Marketwired
Polar Star Mining Corporation (TSX VENTURE: POS)(PINK SHEETS:
POSRF) ("Polar Star" or the "Company") announces that it has
acquired an additional 5% equity interest in the Chepica Mine by
paying 150 million Chilean Pesos (approximately US$293,000). In
addition, Polar Star has amended the Chepica Acquisition Agreement
to enable the acquisition of the remaining 15% equity interest for
600 million Chilean Pesos (approximately US$1.2 million) on or
before June 20, 2009. Pending successful completion of its final
due diligence review, Polar's acquisition cost for the remaining
90% equity interest is 2.85 billion Chilean Pesos (approximately
US$5.6 million), due on or before June 20, 2009. The acquisition of
100 per cent of the mine will therefore total 3.15 billion Chilean
Pesos (approximately US$6.2 million). A feasibility study has not
been completed and there is no certainty the proposed operations
will be economically viable.
The Chepica Mine
This Chepica Mine acquisition adjoins Polar Star's wholly owned
Corinto and Batuco claims. These claims plus the Chepica Mine
property total 16,640 hectares in the Pencahue District, Region
VII, Chile on which prior exploration by other companies has
defined 15 high grade gold and copper-gold zones. The Chepica Mine
is scheduled to go into production during the third quarter of this
year at a planned initial production of 200 tonnes per day
increasing to over 500 tonnes per day by mid 2009. The Mine will
produce a copper-gold concentrate.
The Chepica Mine property, located 225 kilometers south of
Santiago, near the city of Talca, covers the Cerro Chepica high
grade copper-gold mining district. It is readily accessible by
paved and good gravel road from the city of Talca 20 kilometers to
the east. See Polar Star's news release of April 24, 2008 for
additional information.
Qualified Person
Mr. Terence Walker, M.Sc., P.Geo., is the qualified person
within the meaning of National Instrument 43-101. Mr. Walker has
reviewed the contents of this news release.
About Polar Star
Polar Star was created to acquire advanced stage exploration
properties focusing on gold, copper gold, and uranium. The
Corporation's material assets include 20 projects in Chile, which
are 100% owned and cover approximately 141,000 hectares. Polar Star
announced the closing of a $5 million private placement on July 8,
2008 during which HudBay Minerals Inc. acquired 3,860,605 Units
(approximately 9.9% of the outstanding shares of the Company, as at
July 8, 2008).
Forward-Looking Statements
The statements made in this news release may contain
forward-looking statements that may involve a number of risks and
uncertainties. Actual events or results could differ materially
from the Company's expectations and projections. Accordingly,
readers should not place undue reliance on forward-looking
statements. For a more detailed discussion of such risks and other
factors, refer to Polar Star Mining Corporation's filings with
Canadian securities regulators available on www.sedar.com or the
Company's website at www.polarstarmining.com.
Share Capitalization:
Shares Outstanding: 39,164,098 as at August 11, 2008.
Business Television Feature:
Polar Star was selected and featured on Business Television in
early March 2008. If you missed the show, please click on the link
below to watch the full-feature
http://www.b-tv.com/i/videos/PolarStar.wmv
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release and the
information contained herein.
Contacts: Polar Star Mining Corporation Douglas Willock
President and CEO (416) 368-3496 Email: info@polarstarmining.com
Website: www.polarstarmining.com
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