Fairstar Resources (ASX: FAS) has signed a $5 million funding facility which has been arranged through Fortrend Securities Pty Ltd.
The funding can be drawn down over three years at Fairstar's discretion.
Fairstar has the makings of a diversified mining house with Mahendra’s Find Lindsay Dam Iron Project, Kurnalpi-Randalls Gold Project, and Spinifex Well Gold Project in the Eastern Goldfields of Western Australia, and the Mt Padbury Uranium Project, Mindoolah.
Lindsay Dam has potential to produce Direct Shipping Ore (DSO) with grades >60% Fe. Chip sampling results at Lindsay revealed returned grade Fe with low contaminants. The host BIF structure is in excess of 15km in length with north-south orientation; 4 bands of BIF up to 100m in width identified, and 239 rock chip samples collected to date.
Kurnalpi South and Area 9 prospects have returned high grade gold intersections both historic and current (in the case of Area 9) exploration.
Throw in the fact that Fairstar also is the largest shareholder in Golden West Resources (ASX: GWR) with 18.3% of the company and with more aggressive exploration and likely results, and Fairstar looks interesting.
When the funds are drawn down, shares will be issued to Fortrend at a 10% discount to the average closing price calculated over the 5 trading day period following a drawdown notice. In addition Fortrend will receive 1 option for every 4 shares issued. The strike price of the option will be the issue price of the shares to Fortrend.
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