| December 22, 2009 Abbastar Closes $1,000,000 Private Placement for Upcoming Drill Program at High Grade Talbot Lake Gold Deposit | |
| Abbastar Resources Corp. (the "Company" or "Abbastar") is pleased to announce the closing of the private placement with Mineralfields Group ("MineralFields") announced on December 15, 2009. The Company has issued 3,125,000 flow-through units ("FTU") at a price of $0.32 per FTU for total gross proceeds of $1,000,000. Each FTU consists of one flow-through common share and one-half of one transferable common share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one additional non-flow-through common share of the Company until December 18, 2011 at an exercise price of $0.40 per share during the first year and $0.50 per share during the second year. The Company has paid a cash finder's fee to First Canadian Securities(r) (a division of Limited Market Dealer Inc.) equal to 5% of the proceeds of the private placement plus 312,500 two-year non-flow-through finder's options ("Finder's Options"). Each Finder's Option entitles the holder to purchase one unit of the Company at a price of $0.32 per unit (the "Finder's Units") until December 18, 2011. Each Finder's Unit is comprised of one common share of the Company, and one half of one non-transferable share purchase warrant (the "Finder's Warrants"). The Finder's Warrants otherwise have the same terms as the share purchase warrants comprising the FTUs. The securities are subject to a four-month hold period pursuant to applicable securities laws and regulations. The hold period will expire on April 19, 2010. The funds raised will be used for an aggressive drilling program planned for January at the high grade Talbot Lake gold deposit, located in the prolific gold producing area known as the Uchi Subprovince of northern Ontario. A minimum 5000 metre drill program will test the down plunge extensions of the "Main Zone" and "East Zone" gold deposits. Historical drilling by Placer Dome intersected 16.4 g/t Au over 7.6 metres at the "Main Zone" and 7.0 g/t Au over 6.5 metres at the "East Zone". Importantly, there is considerable potential elsewhere on the property in similar structures to the known gold bearing zones and those will be tested during this drill program as well. Abbastar Resources Corp. acquired the right to earn 100% interest from Denison Mines Corp., subject to a 2% NSR, upon expenditures of $7,000,000 over eight years. Please visit our website www.abbastarresources.com to learn more about the Company and view the presentation on the Talbot Lake GOLD Project. "We are very pleased to be commencing our relationship with MineralFields Group", said John B. Good, President and CEO of the Company. "This is an important milestone in the growth of Abbastar and we look forward to working with MineralFields Group as we develop our mineral properties in Ontario and Quebec." About MineralFields, Pathway and First Canadian Securities(r) MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities(r) (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities(r). On behalf of the Board, John B. Good 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 release. | |
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