News! Western Star arranges $5M equity facility with Crescita

WESTERN STAR RESOURCES SECURES $5,000,000 INSTITUTIONAL EQUITY CAPITAL FACILITY

Western Star Resources Inc. has secured its previously announced equity drawdown facility from Crescita Capital LLC in the aggregate amount of up to $5-million, representing major institutional backing for Western Star.

Blake Morgan, chief executive officer of Western Star, states: "We are thrilled to be receiving this level of institutional backing in our first year of listing. The plan is simple -- explore and drill. Our Western Star property has drill permits in place and six kilometres of surface mineralization with some bonanza grades. Our Yukon property has multiple discoveries, impressive high-grade zones and is road accessible, keeping drilling costs low. We now have the funding to aggressively attack these assets that we feel are world class and underexplored."

The equity investment facility is in the aggregate amount of $5-million, and Western Star will have three years to utilize the $5-million to expand and develop its assets.

Western Star can draw down funds from the equity investment facility from time to time during the three-year term at its discretion by providing a notice to Crescita Capital and issuing common shares to Crescita Capital in exchange. The shares issued in connection with any private placement will be priced at 85 per cent of the average closing bid price resulting from the following 10 days of trading after the drawdown notice, subject to the pricing requirements of the Canadian Securities Exchange. The drawdown notice amount requested by Western Star cannot exceed 500 per cent of the average daily trading volume of the pricing period.

The equity investment facility is being made available pursuant to an amended and restated investment and advisory agreement between the company and Crescita Capital, pursuant to which Crescita Capital will also provide certain advisory services to the company. Pursuant to the agreement, in consideration for making the equity investment facility available to the company, the company paid a commitment fee to Crescita Capital by issuing: (i) 1,666,666 common shares at a deemed price of 15 cents per share; and (ii) 942,800 transferable warrants of the company, each warrant to be exercisable at 15 cents, subject to adjustment, for three years. The fee warrants will vest and become exercisable on a one-to-one basis with each common share issued to Crescita Capital under private placements from time to time. In addition, the company paid an initial $2,500 consulting fee to Crescita Capital in consideration for the services provided to date, which was satisfied through the issuance of 16,666 common shares at a deemed price of 15 cents per share.

All securities issued to Crescita Capital pursuant to the agreement will not be subject to resale restrictions under applicable securities laws. The company has obtained a waiver from the CSE in respect of Section 6.1(4)(a) of the CSE's policies, which would otherwise have required the application of a four-month hold period on the fee shares and the consulting fee shares. The company intends to seek similar waivers for all other securities issued under the equity investment facility from time to time.

The company obtained written approval for the agreement and the transactions contemplated thereunder from shareholders holding more than 50 per cent of the outstanding shares of the company, as required by the policies of the CSE.

Western Star Resources is a mineral exploration and development company. The company's objective is to increase shareholder value through the development of exploration properties using cost-effective exploration practices, acquiring further exploration properties, and seeking partnerships by either joint venture or sale with industry leaders. The company currently owns the Western Star property group, composed of nine non-surveyed contiguous mineral claims totalling 2,797 hectares, located within the Revelstoke mining division of British Columbia, approximately 50 kilometres southeast of Revelstoke, B.C., and roughly 10 kilometres north of the abandoned community of Camborne. Access to the Camborne area is via paved highway from either Revelstoke or Nakusp. Access to the property area is best via helicopter from Revelstoke or Nakusp.

Thank you.

Western Star Resources Inc.
https://www.westernstarresources.com/

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