Copper Mountain Signs Letter of Intent to Option Weststar's Axe Property

Copper Mountain Signs Letter of Intent to Option Weststar's Axe Property 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/27/13 -- Weststar
Resources Corp. (TSX VENTURE:WER) (the "Company" or "Weststar") is
pleased to announce that it and Bearclaw Capital Corp. ("Bearclaw")
have entered into an arms-length Letter of Intent dated August 23,
2013 (the "LOI") with Copper Mountain Mining Corp. ("Copper
Mountain") (TSX:CUM), a British Columbia corporation, whereby Copper
Mountain will, subject to due diligence, enter into an exclusive
option agreement to acquire up to 75% undivided interest in and to 25
mineral claims located in British Columbia, Canada, known as the Axe
Property (the "Property"). Weststar and Bearclaw currently hold the
property as a joint venture (the "Axe JV"), in which the parties hold
70% and 30% interests, respectively.  
Under the terms of the LOI, Copper Mountain can earn a 51% interest
in the Axe Property by incurring CDN$3,000,000 of expenditures in
exploration activities on the Property by the end of the four year
Earn-in Period and paying to the Company and Bearclaw (collectively,
in proportion to their Participating Interests in the Axe JV): $5,000
immediately upon signing of LOI / 60 day due diligence period;
$25,000 on the Commencement Date; and $50,000, $100,000, $150,000 and
$200,000 on the succeeding anniversaries of the Commencement Date. 
If Copper Mountain exercises the Option, a joint venture will be
formed between Copper Mountain, the Company and Bearclaw, with Copper
Mountain holding a 51% Participating Interest and the Company and
Bearclaw holding 34.3% and 14.7% Participating Interests,
respectively. Upon exercise of the Option, Copper Mountain will have
the option to acquire an additional 24% undivided interest in the
Property (increasing its interest to 75%, absent other adjustments)
by either completing a feasibility study on the Property or incurring
no less than $12,000,000 in expenditures on the Property and
providing the Company and Bearclaw with evidence of such
expenditures. In the event Copper Mountain exercises the second
option and acquires an undivided 75% interest in the Property, then
the Company will have a 17.5% and Bearclaw a 7.5% Participating
Interest in the Property respectively. 
The Property 
The Property is an advanced stage project with known porphyry copper
mineralization, which has been the subject of numerous drill programs
since the 1960s. The Property consists of 25 mineral claims (4,983
hectares), located in the Similkameen Mining Division, 20 km north of
Princeton, British Columbia. The Property was acquired in the 1960s
by Adonis Mines Ltd., which commenced exploration for porphyry copper
style of mineralization. Major exploration programs were completed by
Adonis, Amax Exploration Inc. and Cominco Ltd. during the 1970s and
early 1980s. In total, 185 holes, comprising some 14,000 metres were
drilled during this period. Amax provided the initial historic
resource estimate in 1971, followed by estimates of Adonis in 1972
and 1973. The main area of the Property has been continuously held
under title since 1967. A fourteen-hole diamond drill program was
completed by Weststar in 2006 and 2007 totalling 3,401 metres. In
2012, Weststar had optioned the property to Xstrata Copper Canada
("Xtrata"). Xstrata spent over $475,000 in 2012 expenditures before
terminating the agreement due to corporate restructuring. "Xstrata
2012 Axe Report" is available on Weststar's website.  
About Weststar Resources  
Weststar Resources is committed to evaluating, securing and advancing
Canadian mineral properties. Weststar's current stable of properties
include its "Albany South East" Property, contiguous to the southeast
side of Zenyatta Ventures' Albany Graphite Deposit Discovery, its
advanced "Axe" Porphyry Copper-Gold Project, 20 kilometers north of
Princeton, BC, a Letter of Intent with Cartier Resources to acquire
up to 80% interest in the "Diego" Quebec Property, approximately 20
kilometres west of TomaGold's Monster Lake Project and its "Tahts
Reach" Property, adjacent to Gold Reach's Ootsa Property.  
About Copper Mountain  
Copper Mountain Mining Corp. is a Canadian-based, high growth mining
company focused on adding value through successful exploration,
project development, efficient operations, and opportunistic
acquisitions. Maintaining a low risk profile through project
diversification, astute financial management and operating in secure
jurisdictions are key priorities for Copper Mountain's Management
team.  
Copper Mountain's flagship asset is the 75% owned Copper Mountain
mine located in southern British Columbia near the town of Princeton.
The Company has a strategic alliance with Mitsubishi Materials
Corporation who owns the remaining 25%. The Copper Mountain mine
commenced production in the summer of 2011, and has continued to
improve its operations during the year; and attained design capacity
in the summer of 2012. The 18,000-acre site has a resource of
approximately 5 billion pounds of copper and remains open laterally
and at depth. The mine has significant exploration potential that
will need to be explored over the next few years to fully appreciate
the properties full development potential. 
On Behalf of the Board 
Will Rascan, President  
Weststar Resources Corp. 
Neither the 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. 
This press release contains forward-looking statements about Weststar
Resources Corp. Forward-looking statements are statements that are
not historical facts. The forward-looking statements in this press
release are subject to various risks, uncertainties and other factors
that could cause the resulting issuer's actual results or
achievements to differ materially from those expressed in or implied
by forward-looking statements. These risks, uncertainties and other
factors include, without limitation, uncertainty as to resulting
issuer's ability to achieve the goals and satisfy the assumptions of
management general economic factors and other factors that may be
beyond the control of the parties. Forward-looking statements are
based on the beliefs, opinions and expectations of the management of
Weststar Resources Corp. at the time they are made, and Weststar
Resources Corp. does not assume any obligation to update its
forward-looking statements if those beliefs, opinions or
expectations, or other circumstances, should change.
Contacts:
Weststar Resources Corp.
604-945-6749
info@weststarresources.com
www.weststarresources.com
 
 
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