Mining Stocks News; Archean Star Resources Inc.: Kent Re-Prices Archean Star Plan of Arrangement Financing
VANCOUVER, BRITISH COLUMBIA--(http://www.investorideas.com/ gold and mining stocks blog ) Sept. 22, 2010 - Kent Exploration Inc. (the "Company" or "Kent") reports that it has reduced the non-brokered private placement required to implement the Archean Star Resources Inc ("Archean") Plan of Arrangement (the "Arrangement") Financing from the planned up to 10,000,000 Units at $0.25 cents per Unit, to 7,000,000 Units at $0.15 cents per Unit for gross proceeds of $1,050,000. The original financing announced in the Company's news release KEX2010-13 was delayed due to market conditions caused primarily by the Australian Government's proposal to introduce a Super Profits Tax on the Australian mining industry in early May 2010. This proposal was subsequently rescinded and replaced by a Resource Rental Tax, which applies only to the coal and iron ore industries, and does not affect the Australian gold exploration and mining industry.
Upon receipt of the funds from the financing, and the Arrangement taking effect, Archean intends to commence a second phase diamond drilling program on the Gnaweeda Gold Project, where, as announced in the Company's news releases, KEX2010-14 and KEX2010-22, a discovery hole at Bunarra intersected 18 meters of 12.34 g/t Au from 115 m to 133 m, including a one meter intersection averaging 110 g/t Au. The discovery is open along strike and to depth.
The 17,000 ha (42,000 acre) Gnaweeda Gold Project, which lies approximately 640 km (400 miles) northeast of Perth and 35 km (22 miles) northeast of Meekatharra, comprises a package of two exploration licenses over a strike length of 28 km (17.5 miles) of the Gnaweeda Greenstone Belt. It consists of several gold prospects, including Turnberry in the north, which has an identified gold-bearing zone approximately 2.5 km (1.65 miles) along strike and 750 meters (0.46 miles) in width, St. Anne's, and Bunarra in the south, as well as other known gold-bearing prospects. Eleven additional targets have been identified based upon geophysical data.
Archean has entered into an Option Agreement (the "Agreement") with Teck Australia Pty Ltd ("Teck"), as announced in its news release KEX2009-28, to earn 100% of Teck's interest in the joint venture between Chalice Gold Mines Ltd (30%) and Teck (70%), on the Gnaweeda Gold Project.
The non-brokered financing, consisting of Subscription receipts, is being undertaken by 0877072 BC Ltd (a corporation which will amalgamate with Archean under the Arrangement) in order to provide sufficient working capital for Archean's business plan and a listing on the TSX Venture Exchange (the "Exchange").
Subscription funds will be held in trust pending completion of the Arrangement, at which time the funds shall be released and each subscription receipt shall automatically convert, for no additional consideration, into Units of Archean at $0.15 per Unit. Each Unit will consist of one common share and one common share purchase warrant exercisable at $0.25 cents for 12 months.
The Plan of Arrangement was approved by the shareholders of the Company on April 30, 2010, and the BC Supreme Court on May 6, 2010, and Archean will become a separately listed company from Kent and hold the Gnaweeda Gold Project in the Murchison District of West Australia, while Kent will retain the existing properties currently held. The Arrangement will not take effect until the financing has been completed, at which time the Company shall issue a news release providing advance notice of the effective date ("Effective Date").
As of the Effective Date, there will be approximately 25,000,000 common shares of Archean issued. Approximately 13,000,000 common shares of Archean will be issued to holders of common shares of Kent held on the Effective Date, on the basis of one (1) common share of Archean for every four (4) common shares of Kent and approximately 5,000,000 common shares, or approximately 21% of Archean, will be issued to Kent, with 7,000,000 common shares being held by the subscribers to the financing.
The Company proposes to submit the listing application to the TSX Venture Exchange immediately after the effective date, expected to be on or about November 1, 2010, in order to list Archean on that exchange.
Kent Exploration Inc is a junior exploration company that has an Option Agreement to earn 100% of Teck Australia Pty Ltd's interest in the Gnaweeda Gold Project in West Australia and has acquired the Alexander River, Paparoa and Lyell gold projects in the highly prolific Reefton gold field in New Zealand.
The Company has an option to earn a 100% interest in the Silver Hills property, a silver/lead/zinc prospect in south-eastern British Columbia, and has a 100% interest in the Courtney Lake property, a silver/lead/zinc prospect in north-east Saskatchewan. The Company has a 100% interest in Coal Prospecting Permits covering approximately 92,000 ha in east-central Saskatchewan, a 100% interest in a mining lease option on the Flagstaff Mountain property, a permitted barite mine in eastern Washington state, a 100% interest in the mining lease option on the Ivanhoe Creek property, a Midas-style gold/silver target in Nevada's Carlin Trend, and 50% of a 100% interest in the Ivanhoe Creek placer claims covering a bentonite deposit.
This News Release has been prepared on behalf of the Kent Exploration Inc. Board of Directors, which accepts full responsibility for its contents. The contents of this release have been reviewed and approved by Marvin A. Mitchell, a Qualified Person and defined by National Instrument NI 43-101.
ON BEHALF OF THE BOARD
Graeme O'Neill, President
Upon receipt of the funds from the financing, and the Arrangement taking effect, Archean intends to commence a second phase diamond drilling program on the Gnaweeda Gold Project, where, as announced in the Company's news releases, KEX2010-14 and KEX2010-22, a discovery hole at Bunarra intersected 18 meters of 12.34 g/t Au from 115 m to 133 m, including a one meter intersection averaging 110 g/t Au. The discovery is open along strike and to depth.
The 17,000 ha (42,000 acre) Gnaweeda Gold Project, which lies approximately 640 km (400 miles) northeast of Perth and 35 km (22 miles) northeast of Meekatharra, comprises a package of two exploration licenses over a strike length of 28 km (17.5 miles) of the Gnaweeda Greenstone Belt. It consists of several gold prospects, including Turnberry in the north, which has an identified gold-bearing zone approximately 2.5 km (1.65 miles) along strike and 750 meters (0.46 miles) in width, St. Anne's, and Bunarra in the south, as well as other known gold-bearing prospects. Eleven additional targets have been identified based upon geophysical data.
Archean has entered into an Option Agreement (the "Agreement") with Teck Australia Pty Ltd ("Teck"), as announced in its news release KEX2009-28, to earn 100% of Teck's interest in the joint venture between Chalice Gold Mines Ltd (30%) and Teck (70%), on the Gnaweeda Gold Project.
The non-brokered financing, consisting of Subscription receipts, is being undertaken by 0877072 BC Ltd (a corporation which will amalgamate with Archean under the Arrangement) in order to provide sufficient working capital for Archean's business plan and a listing on the TSX Venture Exchange (the "Exchange").
Subscription funds will be held in trust pending completion of the Arrangement, at which time the funds shall be released and each subscription receipt shall automatically convert, for no additional consideration, into Units of Archean at $0.15 per Unit. Each Unit will consist of one common share and one common share purchase warrant exercisable at $0.25 cents for 12 months.
The Plan of Arrangement was approved by the shareholders of the Company on April 30, 2010, and the BC Supreme Court on May 6, 2010, and Archean will become a separately listed company from Kent and hold the Gnaweeda Gold Project in the Murchison District of West Australia, while Kent will retain the existing properties currently held. The Arrangement will not take effect until the financing has been completed, at which time the Company shall issue a news release providing advance notice of the effective date ("Effective Date").
As of the Effective Date, there will be approximately 25,000,000 common shares of Archean issued. Approximately 13,000,000 common shares of Archean will be issued to holders of common shares of Kent held on the Effective Date, on the basis of one (1) common share of Archean for every four (4) common shares of Kent and approximately 5,000,000 common shares, or approximately 21% of Archean, will be issued to Kent, with 7,000,000 common shares being held by the subscribers to the financing.
The Company proposes to submit the listing application to the TSX Venture Exchange immediately after the effective date, expected to be on or about November 1, 2010, in order to list Archean on that exchange.
Kent Exploration Inc is a junior exploration company that has an Option Agreement to earn 100% of Teck Australia Pty Ltd's interest in the Gnaweeda Gold Project in West Australia and has acquired the Alexander River, Paparoa and Lyell gold projects in the highly prolific Reefton gold field in New Zealand.
The Company has an option to earn a 100% interest in the Silver Hills property, a silver/lead/zinc prospect in south-eastern British Columbia, and has a 100% interest in the Courtney Lake property, a silver/lead/zinc prospect in north-east Saskatchewan. The Company has a 100% interest in Coal Prospecting Permits covering approximately 92,000 ha in east-central Saskatchewan, a 100% interest in a mining lease option on the Flagstaff Mountain property, a permitted barite mine in eastern Washington state, a 100% interest in the mining lease option on the Ivanhoe Creek property, a Midas-style gold/silver target in Nevada's Carlin Trend, and 50% of a 100% interest in the Ivanhoe Creek placer claims covering a bentonite deposit.
This News Release has been prepared on behalf of the Kent Exploration Inc. Board of Directors, which accepts full responsibility for its contents. The contents of this release have been reviewed and approved by Marvin A. Mitchell, a Qualified Person and defined by National Instrument NI 43-101.
ON BEHALF OF THE BOARD
Graeme O'Neill, President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
For more information, please contact
Archean Star Reosurces Inc.
Graeme O'Neill
President
604-684-3394 or Toll Free: 1-866-399-6539
1-888-282-7763 (FAX)
www.archeanstar.com
Archean Star Reosurces Inc.
Graeme O'Neill
President
604-684-3394 or Toll Free: 1-866-399-6539
1-888-282-7763 (FAX)
www.archeanstar.com
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