Starcore accepts Korestar’s offer on Ajax property, British Columbia

Starcore International Mines Ltd. [TSX: SAM; FK: V4JA] has provided an update on the sale of its Ajax property, northwestern British Columbia.

The board of directors has accepted an offer from Korestar Exploration Inc. to acquire Starcore’s 100%-owned Ajax property, located 12 km north of Alice Arm in northwestern British Columbia, at the southern end of the mineral belt known as the Golden Triangle.

Korestar, a private company incorporated under the jurisdiction of British Columbia, is not a reporting issuer and does not currently trade on any stock exchange, although it is Korestar’s intention to seek a listing on either the Canadian Securities Exchange or TSX Venture Exchange.

The offer included the following terms of purchase the issuance to Starcore of 2.5 million shares of Korestar; $100,000 payment within 180 days from signing of a mineral property purchase agreement; $100,000 work commitment within 18 months of the effective date; $100,000 work commitment within 36 months of the effective date and a 2.5% net smelter return royalty, with an option for Korestar to buy back 1.5% for $1 million.

The proposed transaction is a non-arm’s-length transaction and may be considered a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions.

The Ajax property was originally acquired by Starcore in 2015, as part of Starcore’s purchase of Creston Moly Corp. However, Starcore has not expended any material amount of time or money toward exploring that grassroots property over the past 10 years, and it presently has no plans to undertake the level of work required to adequately explore or develop that property. The sale of the Ajax property to Korestar represents an opportunity for Starcore to have the property advanced while retaining an interest therein.

The company has formed an advisory committee to provide strategic, financial and technical guidance to management on a broad range of corporate and operational matters.

The advisory committee will serve as a valuable resource to the company, offering independent insights and specialized expertise to support informed decision making, enhance operational efficiency and advance the company’s strategic objectives. Its mandate includes advising on financial planning and capital allocation, evaluating technical initiatives and project development, and assisting management in identifying and addressing key risks and opportunities.

Heading the committee as chairperson is Silvia Muzi of Rome, Italy, a chartered accountant and statutory auditor with over 25 years of experience in tax and corporate advisory issues. She specializes in extraordinary corporate transactions, corporate governance and internal control systems, with extensive expertise as chair and statutory auditor on boards of statutory auditors of listed and public companies.

Starcore International Mines is engaged in precious metals production with focus and experience in Mexico. The company’s base of producing assets includes its gold-producing San Martin mine and the La Tortilla silver mine, both in the state of Queretaro, Mexico.