Megastar Closes $671,526 Private Placement Financing
July 22 2011 - 11:44AM
Marketwired
Megastar Development Corporation ("Megastar", the "Company" or
"MDV") (TSX VENTURE: MDV)(FRANKFURT: M5Q) is pleased to announce
that further to its news release dated June 21, 2011, has closed
its non-brokered private placement financing and issued 6,715,265
units at a price of 10 cents per unit for gross proceeds of
$671,526. Each unit consists of one common share of the company and
one transferable share purchase warrant. Each warrant entitles the
holder to purchase one additional common share of the company at a
price of 13.5 cents until July 20, 2013. Directors, officers and
insiders of the company subscribed for $37,500 of the offering,
representing 375,000 units or 5.6% of the above financing. The
company has paid finder's fees of 437,144 units representing 6.5%
of the total proceeds raised under the private placement financing.
All shares issued under the offering are subject to a four-month
hold period expiring Nov. 21, 2011.
Proceeds of the Offering will be used for general working
capital, including company's ongoing evaluation of possible
projects.
The Company also announces a grant of incentive stock options to
directors, officers and consultants of the Company to purchase up
to an aggregate of 1,050,000 Company common shares, at a price of
$0.25 each for a period of five years. These options have been
granted pursuant to the terms of the Company's stock option plan
approved by Company shareholders on December 7, 2010.
ABOUT MEGASTAR DEVELOPMENT CORP.
Megastar Development Corp. is an emerging resource company
engaged in the acquisition, exploration and development of mineral
properties in Canada. Megastar owns mineral properties in Quebec
and British Columbia. For further information, investors and
shareholders are invited to visit the Company's website at
www.megastardevelopment.com or call the office at 604-683-6648.
ON BEHALF OF THE BOARD OF DIRECTORS
Dusan Berka, P. Eng., President & CEO
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 news release.
Contacts: Megastar Development Corp. Dusan Berka, P. Eng.
President & CEO (604) 683-6648 (604) 683-1350 (FAX)
www.megastardevelopment.com
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