🕐13.09.12 - 19:54 Uhr
POLAR STAR AMENDS OPTION AGREEMENT WITH KAIROS CAPITAL CORPORATION
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Not for distribution to United States wire services or dissemination in the
United States
POLAR STAR AMENDS OPTION AGREEMENT
WITH KAIROS CAPITAL CORPORATION
Toronto, Ontario September 13, 2012, Polar Star Mining Corporation (Polar
Star) (TSX:PSR) announces that further to its news release dated February
21, 2012, it has entered into an amended and restated option agreement (the
"Amended and Restated Option Agreement") with Kairos Capital Corporation
("Kairos") to amend certain terms of the option agreement between Polar Star
and Kairos dated February 16, 2012 (the "Original Option Agreement"),
pursuant to which Kairos agreed to acquire an interest in certain mineral
exploration properties located in Chile (the "Assets").
Pursuant to the terms of the Original Option Agreement, Kairos agreed to
acquire from Polar Star a 51% interest in: (i) 16 mineral exploration
concessions, known as the "Nancagua Property"; (ii) 29 exploration
concessions and an option to acquire five (5) additional exploration
concessions, known as the "Fortuna Property"; and/or (iii) one of Polar
Stars non-core properties.
Under the terms of the Amended and Restated Option Agreement, Kairos will
pay US$165,000 to Polar Star and shall have funded US$50,000 of option
payments due to a third party in respect of the Fortuna Property, in
exchange for which Kairos will acquire a 100% interest and a 50% interest in
the Nancagua Property and the Fortuna Property, respectively.
With respect to the Fortuna Property, under the terms of the Amended and
Restated Option Agreement, Kairos will have the option of increasing its
interest in the Fortuna Property if Kairos:
(i) funds the $1,300,000 in scheduled option payments due to a
third party by May 31, 2014, Kairos shall earn an additional 10% interest in
the Fortuna Property;
(ii) incurs additional exploration costs of $600,000 on or
before March 31, 2015, Kairos shall earn an additional 5% interest in the
Fortuna Property; and
(iii) if Kairos completes a bankable feasibility study in respect
of the Fortuna Property on or before March 31, 2023, Kairos shall earn an
additional 10% interest in the Fortuna Property.
Kairos has also selected a property known as the "Salvadora Property", which
was one of Polar Stars non-core properties, comprised of 36 exploration
concessions encompassing approximately 9,400 hectares.
Pursuant to the terms of the Amended and Restated Option Agreement,
Kairos will have the option to earn a 51% interest in the Salvadora Property
by spending $600,000 on exploration programs on the Salvadora Property on or
before March 31, 2014 (the "Earning Phase").
Upon completion of the Earning
Phase, Kairos shall have the option of increasing its interest in the
Salvadora Property.
If Kairos incurs exploration costs on the Salvadora
Property of:
(i) an additional $1,100,000 on or before March 31, 2015,
Kairos shall earn an additional 9% interest in the Salvadora Property;
(ii) an additional $1,500,000 on or before March 31, 2016,
Kairos shall earn an additional 5% interest in the Salvadora Property; and
(iii) an additional $3,000,000 on or before March 31, 2019 or
brings the Salvadora Property to production, Kairos shall earn an additional
10% interest in the Salvadora Property.
Forward-Looking Statements
This news release may contain forward-looking statements based on
assumptions, uncertainties and managements best estimates of future events.
Actual events or results could differ materially from the Companys
expectations and projections.
Investors are cautioned that forward-looking
statements involve risks and uncertainties.
Accordingly, readers should not
place undue reliance on forward-looking statements.
When used herein, words
such as "anticipate", "will", "intend" and similar expressions are intended
to identify forward-looking statements.
For a more detailed discussion of
such risks and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements, refer to Polar Stars filings with Canadian securities
regulators available on www.sedar.com or the
Companys website at
www.polarstarmining.com.
About Polar Star
Polar Star is an emerging exploration company with a focus on building value
in Chile through discovery, development and production.
The company is
advancing its flagship exploration property, Montezuma, that covers 40
kilometres of the West Fault zone and the cross-cutting Esperanza Fault
systems.
The property is located between Codelcos Radomiro Tomic -
Chuquicamata - Ministro Hales mines in the north and Antofagasta PLCs El
Tesoro - Esperanza - Polo Sur mines to the south.
Polar Star operates the
Chpica gold/silver/copper mine located 270 kilometres south of Santiago,
Chile.
The head office of Polar Star is located in Toronto.
Share Capitalization
Shares outstanding: 99,276,001 as at September 13, 2012.
Contact Information
Adam Rochacewich, CFO
Tel: (416) 368-3496
Email:
www.polarstarmining.com