Redstar Gold Corp. (TSX.V:RGC) (the "Company") has arranged a non-brokered private placement to raise gross proceeds of up to $600,000. The Company will issue up to 4,000,000 units at a price of $0.15 per unit. Each unit will consist of one common share and one-half share purchase warrant. Each whole warrant is exercisable into one common share at a price of $0.25 for a period of 1 year. If the closing price of the Company's shares exceeds $0.30 for 10 consecutive trading days, the share purchase warrants must be exercised within 30 days of notice thereof from the company, or they will expire. The Company may pay finder's fees on all or a portion of the placement in accordance with regulatory policies and guidelines.
Proceeds from this financing will be used for a program to follow-up the high grade gold values intercepted on the Newman Todd project in Red Lake, to continue to acquire high priority gold projects in Nevada and for general working capital.
The Company also announces it has agreed to settle up to $300,000 of debt by the issuance of units at a price of $0.15 per unit. Each unit will consist of one common share and one-half share purchase warrant. The warrants have the same terms as the warrants issued pursuant to the private placement. Any insiders participating in the settlement will be entitled to receive only shares and not units.
The common shares and any shares issued pursuant to the exercise of the warrants will be subject to a four-month hold period.
The foregoing is subject to regulatory acceptance.
On Behalf of the Board,
Redstar Gold Corp
The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.