Canstar Receives $410,000 from Early Warrant Exercises & Provides Corporate Updates

Rhea-AI Summary

Canstar Resources has received $410,000 through the early exercise of 8,200,000 warrants at $0.05 per share from its January 2024 financing. The company plans to use these proceeds for general working capital. Currently, 18,465,500 warrants remain outstanding, set to expire on January 23, 2026. Additionally, the Board has approved granting 400,000 stock options to employees at $0.04 per share, exercisable until August 13, 2029. Some employees have voluntarily canceled 450,000 previous options that were exercisable at $0.28.

Positive

• Raised $410,000 in immediate capital through warrant exercises
• Reduction in potential dilution through cancellation of higher-priced options ($0.28)

Negative

• New options granted at $0.04, representing a significant discount to previous $0.28 options
• Dilution of existing shareholders through warrant exercises

Toronto, Ontario--(Newsfile Corp. - October 30, 2024) - CANSTAR RESOURCES INC. (TSXV: ROX) (OTC Pink: CSRNF) ("Canstar" or "the Company") has issued 8,200,000 common shares to investors following the early exercise of warrants from its January 2024 financing. The warrants had an exercise price of $0.05 and were set to expire on January 23, 2026. The early warrant exercise has resulted in total proceeds of $410,000, which Canstar plans to use for general working capital. The Company currently has 18,465,500 outstanding warrants, with an exercise price and expiration date of $0.05 and January 23, 2026, respectively.

The Company's Board of Directors also authorized the grant of 400,000 stock options ("the Options") to select employees under its stock option plan. The Options are subject to vesting provisions and are exercisable until August 13, 2029, at a strike price of $0.04 per share, reflecting the TSX Venture Exchange closing price of the Company's shares on August 14, 2024. Certain employees have voluntarily canceled a total of 450,000 previously issued options, which were exercisable at $0.28.

About Canstar Resources Inc.

Canstar Resources Inc. (TSXV: ROX) (OTC Pink: CSRNF) is an exploration company focused on critical minerals and gold. The Company's 100%-owned Golden Baie Project (548.75 km²) contains high-grade gold and antimony deposits along a major mineralized structure that hosts numerous gold deposits. The Buchans and Mary March projects (65.75 km²), which include a joint venture with Glencore, are in the world-class, past-producing VMS mining camp of Buchans, known for its rich deposits of zinc, copper, and silver, and have yielded high-grade zinc and copper discoveries.

For further information, please contact:

Juan Carlos Giron, Jr.
President & Chief Executive Officer
Email: jc@canstarresources.com
Phone: 1-647-247-8715
Website: www.canstarresources.com

Neither 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228187

FAQ

How much capital did Canstar Resources (CSRNF) raise through warrant exercises in October 2024?

Canstar Resources raised $410,000 through the early exercise of 8,200,000 warrants at $0.05 per share.

What is the exercise price and expiry date of Canstar Resources' (CSRNF) remaining warrants?

The remaining 18,465,500 warrants have an exercise price of $0.05 and expire on January 23, 2026.

What are the terms of Canstar Resources' (CSRNF) new stock option grant in 2024?

Canstar granted 400,000 stock options exercisable at $0.04 per share until August 13, 2029, with vesting provisions.