Redstar Gold Corp. ('Redstar') and Rubicon Minerals Corporation (Rubicon) have renegotiated their West Red Lake property agreement. Under the new terms, both parties will dilute equally if a third party is brought into the agreement and all payments made by a third party will be for Redstar's account. In addition, onc e Redstar has earned an initial 51% interest they can elect to earn an additional 9% (for a total of 60%) by making expenditures in the amount of $3.0 million (changed from $7.5 million).
Redstar will issue Rubicon 150,000 shares of Redstar upon signing of the agreement and an additional 4% of issued and outstanding shares when and if a third party agreement is signed.
Rubicon will purchase 350,000 units of Redstar at a price of $0.15. Each unit will consist of one share and one warrant exercisable for one year at a price of $0.20. Rubicon retains the right to participate in future financings.
Scott Weekes, President of Redstar states: 'These changes to our agreement will give Redstar much more flexibility in how we deal with the West Red Lake properties. There now is a built in mechanism for attracting a third party to part or all of our land package and a very obtainable goal for reaching 60% ownership of the properties. We are also very pleased to have Rubicon, not only as partners in the West Red Lake properties, but as significant shareholders in Redstar.'
The foregoing is subject to regulatory acceptance.
CONTACT: TEL: (604) 488-0051 Paddy Nicol, Director, Redstar Gold Corp