April 29, 2016: Redstar Gold Corp. (TSX.V: RGC, US: RGCTF, FRA: RGG) ("Redstar" or the "Company") is pleased to announce that, further to its news release dated April 21, 2016, the Company has closed a non-brokered private placement of 19,085,200 units at a price of $0.06 per unit to raise gross proceeds of $1,145,112. Each unit consisted of one common share and one common share purchase warrant. Each whole warrant can be exercised into one common share of Redstar at a price of $0.14 per share for a period of 3 years from closing.
Proceeds from the placement will be used to advance the Company's Unga Gold Project in Alaska and for general corporate purposes. The Company paid finders' fees totalling $17,685 to certain finders who introduced subscribers to the placement. The private placement is subject to the approval of the TSX Venture Exchange and the securities will be subject to a four month and one day hold period under securities laws.
About The Unga Gold Project -- Geological Overview and Highlights
The 100% controlled Unga Gold Project covers key strategic portions of adjacent Unga and Popof Islands, approximately 900 kilometers southwest of Anchorage, Alaska. Redstar controls a 240 square kilometer land package that is host to numerous structurally controlled, volcanic hosted intermediate-sulfidation epithermal high-grade vein, breccia, stockwork and disseminated gold-silver occurrences. The Unga Project has excellent infrastructure, including direct daily flights from Anchorage, and access to a deep-sea port and a temperate climate.
Selected drill result highlights from the Shumagin Prospect:
*Stated lengths are core width as drilled, true widths have not yet been determined.
Redstar is currently focused on expansion of the Shumagin high-grade gold prospect located at the eastern end of the 7.5-kilometer-long Shumagin Trend. The Shumagin prospect is characterized by multi-episodic gold-silver bearing quartz-adularia-rhodochrosite breccia bodies that occur within structurally controlled dilation zones along the >1,200-meter-long Shumagin Scarp. Dilation zones and breccia bodies occur where oblique pre-to-syn mineral normal and dip-slip faults intersect forming near-vertical mineralized-shoots with vertical extents of over >330 meters. Within the main breccia at Shumagin, multiple cross-cutting gold-silver bearing breccia bodies exhibit contrasting geochemical signatures and indicate telescoping and juxtaposition of the hydrothermal system through time. High-grade gold-silver mineralization is open at depth within the main breccia body at Shumagin. Multiple dilation zones and coincident gold-silver bearing breccia bodies exist along strike of the Shumagin Scarp and remain to be thoroughly tested.
Redstar is also focused on targeting other potential multi-episodic gold-silver breccia bodies at the Orange Mountain and Empire Ridge prospects, both of which are along-strike extensions to known high-grade prospects and mines and have similar geochemical signatures & structural features as the Shumagin Prospect. The former Apollo-Sitka gold mine, located on the southern Apollo-Sitka Trend, was Alaska's first underground gold mine and the site of historic high-grade gold production.
Jesse C. Grady, MSc, CPG-11592, is a Qualified Person as defined by NI 43-101. Mr. Grady has prepared and approved the technical information contained within this release.
About Redstar Gold Corp
Redstar Gold, based in Vancouver, BC, is a junior exploration company focused on high-grade gold projects in North America. In Alaska, the Company is exploring the 100% owned high-grade Unga Gold Project. In Nevada, Redstar is currently seeking suitable partners to advance its portfolio of eleven (11) 100% controlled properties located along and within many of the gold producing trends. Redstar also owns 30% of the Newman Todd Gold Project, in Red Lake, Ontario, Canada. Newman Todd is a high-grade gold discovery along a 1.8 km corridor within the Newman Todd Structure (NTS).
On Behalf of the Board of Directors,
Peter A. Ball, President and CEO
For additional information please contact:
Toll Free: 877.310.3330
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.
Forward-Looking Information This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Redstar Gold Corporation (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.