Redstar Gold Corp. (TSX.V: RGC) (the "Company") announces it has signed a Purchase and Royalty Agreement to acquire a 100% interest in 56 claim units, adjoining the Companies Sobel Lake property in the Red Lake Mining District in northwestern Ontario. The Property is located approximately 20 kilometres southeast of Goldcorp. Inc.'s Red Lake mine and the southern extents of Renaissance Mining Corp.'s/ Red Lake Resources Inc.'s Sobel Lake property.
To earn a 100% interest in the South Sobel Lake property, the Company will make cash payments totalling $56,000, over a three-year period and issue 395,000 common shares from the Company's treasury in the following amounts:
1. 45,000 shares on the date of TSX Venture Exchange approval;
2. 50,000shares on or before the First Anniversary;
3. 50,000shares on or before the Second Anniversary; and
4. 50,000 shares on or before the Third Anniversary; and
5. an additional 200,000 shares on a decision to commence production on the Claims.
Redstar must also carry out $300,000 of exploration work over a four-year period, these work commitment may include work carried out on both the North and South Sobel Lake Claims
The foregoing is subject to regulatory approval.
For more information, please contact Scott Weekes or Paddy Nicol at (604) 488-0051 or visit the Company's website at www.redstargold.com.
On Behalf of the Board,
REDSTAR GOLD CORPORATION
615-800 West Pender St.,
Tel: 604.488.0051 Fax: 604.488.0053
TSX Venture Exchange Symbol: RGC
news release: nr03-12
The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or the accuracy of this news