/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE
TORONTO, Oct. 25, 2012 /CNW/ - Polar Star Mining Corporation ("Polar Star" or
the Company") (TSX: PSR) is pleased to announce the closing of the first
tranche of the private placement of up to 65,000,000 common shares of the
Company (the "Private Placement") at a price of $0.10 per common share (the
"Subscription Price") previously announced on October 5, 2012. The remainder
of the Private Placement will be completed upon receipt of TSX approval,
expected within two weeks.
The Company has issued 54,119,474 common shares at a price of $0.10 per share
for gross proceeds of $5,411,947.40, and an additional 7,650,000 common shares
to Praetorian Resources Limited ("Praetorian") in connection with the
conversion of the previously announced and funded $750,000 promissory note
plus accrued interest in favor of Praetorian.
As of today's date, Praetorian owns 15,919,474 common shares, representing
9.9% of the issued and outstanding shares of the Company. Upon receipt of
TSX approval, an additional 3,380,526 common shares will be issued to
Praetorian bringing their total ownership to 19,300,000 common shares which
will represent 11.7% of the then issued and outstanding common shares of the
The common shares issued pursuant to this Private Placement are subject to a
hold period of four months plus one day from the date of closing.
The proceeds of the Private Placement will be used to support capital
development at the Company's Chépica mine in Chile and for general corporate
In connection with the Private Placement, Arlington Group Asset Management
Limited, broker to the Company, will be paid a cash commission of 2.5% of the
gross proceeds it delivered and an additional 2.5% commission of the gross
proceeds it delivered paid via the issuance of common shares at the
This news release may contain forward-looking statements based on assumptions,
uncertainties and management's best estimates of future events. Actual
events or results could differ materially from the Company's 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 Star's filings with Canadian securities regulators available on
www.sedar.com or the Company's 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 Codelco's Radomiro Tomic -
Chuquicamata - Ministro Hales mines in the north and Antofagasta PLC's El
Tesoro - Esperanza - Polo Sur mines to the south. Polar Star operates the
Chépica gold/silver/copper mine located 270 kilometres south of Santiago,
Chile. The head office of Polar Star is located in Toronto.
Shares outstanding: 161,045,475 as at October 25, 2012.
Contact Information Adam Rochacewich, CFO Tel: (416) 368-3496
SOURCE: Polar Star Mining Corporation
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CO: Polar Star Mining Corporation
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-0- Oct/25/2012 19:41 GMT
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