Eagle Star to raise $750,000 in non-brokered financing

Eagle Star Minerals Corp. (CVE:EGE) plans to raise $750,000 through a non-brokered private placement financing, the company said late Friday.

The exploration-stage company plans to sell 7.5 million units priced at 10 cent per share. Each unit will consist of one share and one full purchase warrant.

Holders of full warrants can purchase an extra share for 20 cents per share for a time frame of about 12 months, following the closing date. 

The Vancouver-based company said it will use the proceeds toward developing its Brazilian phosphate projects – Bomfim, Ruth and Samba.

The Bomfim Agro mineral project, located in the new phosphate belt of Brazil, covers 30,922 hectares across four claims with all exploration licenses and permits in place.

Eagle Star has conducted preliminary mapping and sampling work, and also plans to carry-out a scout drilling program of up to 2,600 metres with a 50 metre depth sometime this September.

Meanwhile, the Ruth Agro mineral projects six main concession blocks cover 133,221 hectares across about 76 phosphate bearing mineral claims. 

Eagle Star plans to examine the characteristics of this land package to optimize recovery, beneficiation and separation.

Since mineralization occurs at surface it is important to complete this set of tests prior to proving the extent of the package at depth and laterally by way of drilling.

The company, however, is waiting for official licenses for its Samba agro mineral project. Upon receipt, Eagle Star plans to test for possible natural fertilizer material identified across the property during the upcoming planting season.

Eagle Star, over the past two years, has boosted its presence in Brazil and continues to concentrate on maximizing shareholder value by acquiring proven phosphate mineralization assets.