Redstar Gold Corp..: Early Warning News Release
Vancouver, September 29, 2016: Redstar Gold Corp. (TSX.V: RGC, US: RGCTF, FRA: RGG) ("Redstar") makes the following announcement in accordance with National Instrument 62-103 The Early Warning System and Related Take Over Bids and Insider Reporting Issues. Redstar advises that today it has acquired ownership and control of 6,172,730 common shares in the capital of NV Gold Corporation ("NV Gold") at the deemed issue price of $0.24 per share for aggregate consideration of $1,481,455 (the "Acquisition"). The Acquisition was made pursuant to a purchase and sale agreement made as of September 1, 2016 (the "Purchase and Sale Agreement"), whereby Redstar sold its Nevada property portfolio and associated database to NV Gold. The NV Gold common shares are listed on the TSX Venture Exchange.
As a result of the Acquisition, Redstar currently holds 6,172,730 NV Gold common shares representing 29.9% of the currently issued and outstanding NV Gold common shares. Prior to the Acquisition, Redstar did not own or control any NV Gold common shares.
In conjunction with the closing of the Acquisition, NV Gold has appointed two individuals designated by Redstar to its board of directors and one NV Gold director has resigned. Further, Redstar has the right to include two nominees proposed by Redstar among NV Gold's nominees for election as a director at each of the two annual meetings of NV Gold occurring after the closing of the Acquisition, out of a maximum of six director nominees of NV Gold.
Redstar acquired the NV Gold common shares for investment purposes only and may otherwise determine to increase or decrease its investment in NV Gold depending on market conditions and any other relevant factors.
An early warning report will be filed on SEDAR and may be found under Redstar's profile on the SEDAR website at www.sedar.com. A copy of the early warning report can also be obtained from the contact below.
Redstar's head office is located at 800 West Pender Street, Suite 600 Vancouver, British Columbia, V6C 2V6, Canada.
About RedStar Gold Corp.
Redstar is a junior exploration company focused on high-grade gold exploration in North America. In Alaska, the Company is exploring the 100% controlled high-grade Unga Gold Project. Redstar also owns 30% of the Newman Todd Gold Project, in Red Lake, Ontario, Canada.
For more information contact:
Peter Ball
T: +1.604.245.5861
Toll Free: 877.310.3330
E: pball@redstargold.com
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