VANCOUVER, BRITISH COLUMBIA--(Marketwire -08/03/12)- Eagle Star Minerals Corp. (EGE.V)(ELGSF)(E6R.F) ("Eagle Star" or "the Company") subject to regulatory approval, intends to complete an offering of up to 7,500,000 units at a price of 10 cents per unit for gross proceeds of $750,000 by way of non-brokered private placement. Each unit comprises one common share and one full share purchase warrant. Each full warrant entitles the holder to purchase one additional common share of the company at a price of 20 cents per common share for a period of 12 months following the date of closing.
Use of Funds and Operations Update
Eagle Star intends to use the proceeds of this financing towards the further development of its' Brazilian phosphate projects - Bomfim, Ruth and Samba. The company's technical team believes that by performing the following work programs they will be able to add significant value to the company's assets.
Bomfim Agro-mineral Project
Preliminary mapping and sampling work done on the Bomfim Agro-mineral Project to date indicates close similarity of Bomfim's geological model to that of MbAC Fertilizers' Itafos Arraias Project. As a result, and subject to TSX Venture approval of the Bomfim transaction, Eagle Star has made the decision to initiate a scout drilling program of up to 2,600 meters with an average depth of no more then 50 meters which is scheduled to commence as early as September.
Ruth Agro-Mineral Project (Canabrava Block)
Eagle Star has just completed preliminary chemical and metallurgical characterization of the ore from the 7 meter phosphate mineralized package discovered over 15kms at the Canabrava Block within the Ruth Agro-mineral Project (announced June 8th 2012). Objectives sought by the testing included:
-- Definition of the mineral phase hosting phosphate.
- Successfully completed by the identification of fluor-apatite as the
major phosphate hosting mineral.
-- Verification of solubility of the fluor-apatite.
- Successfully completed with excellent results up to 95%.
-- Verification of the possibility of desimetric seperation.
- Successfully completed with excellent results showing an upgrade of the
ore by more 100%.
Eagle Star intends to further examine the characteristics of this package to further optimize recovery, beneficiation and separation. Since mineralization occurs at surface it is important to complete this set of tests prior to proving the extent of the package at depth and laterally by way of drilling.
Samba Agro-mineral Project
Pending receipt of official licenses from the DNPM, Eagle Star intends to commence testing of a possible natural fertilizer material identified throughout the property during the upcoming planting season. An agreement has already been reached with local farmers over a live test site.
About the Company
Eagle Star Minerals Corp. is a publicly listed company focused on the acquisition, exploration and development of agro-mineral properties in Brazil. Over the past two years, Eagle Star Minerals has strategically grown its' presence in Brazil and continues to focus on maximizing shareholder value by acquiring assets located in geological areas known for proven phosphate mineralization, coupled with good logistics in close proximity to agriculture.
The Company's shares are publicly traded on the TSX Venture Exchange under the symbol EGE, on the OTC Pink Sheets under the symbol ELGSF and on Frankfurt Stock Exchange under the symbol E6R.
On behalf of the Board of Directors
EAGLE STAR MINERALS CORP.
Eran Friedlander, President
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.
- Eagle Star