(COMTEX) B: StarGold Mines Closes on Acquisition of UniverCompany ( Busine
sWire )
B: StarGold Mines Closes on Acquisition of UniverCompany ( BusinessWire )
NEW YORK, Aug 27, 2007 (BUSINESS WIRE) --
StarGold Mines (OTCBB:SGDM) announced today that it has completed
the acquisition of 100% of UniverCompany LLC, a Russian Limited
Liability Company (UniverCompany). As previously disclosed on December
4, 2006, UniverCompany is a precious metals mining operation with
rights to develop and extract natural resources in the Siberian and
Far Eastern Federal Districts of Russia. UniverCompany's sole
shareholder received fifteen million (15,000,000) restricted shares of
StarGold Mines common stock in consideration for his shares of
UniverCompany. Prior to this new share issuance, StarGold Mines had
cancelled 40,000,000 common shares owned by previous management. The
company has also completed a placement of $500,000 at $3.50 USD per
share in June, significantly helping to fund operations.
Based upon UniverCompany's audited financial statements for the
12-month period ending December 31, 2006, UniverCompany's net sales
and total assets were approximately $1.8 million and $26 million,
respectively. This is based on an exchange rate of 27.14:1.
UniverCompany's principal mining assets consist of rights to the
"Nerchinskie" minerals & metals deposit, which StarGold believes
contains significant amounts of gold and silver, and approximately 17%
of the "Karalon" deposit, which the Company believes has both precious
metals and other scare resources such as copper, lead and tin. The
balance of the purchase price for Nerchinskie of approximately $26
million USD must be paid by UniverCompany prior to January 2013. Under
an agreement dated December 2006, UniverCompany has the option to
acquire the remaining 80% of the Karalon deposit in return for a
payment of $2.8 million USD.
Under the terms of the acquisition, UniverCompany will become a
wholly-owned operating subsidiary of StarGold, with current management
continuing to run day-to-day operations. StarGold is currently quoted
in the United States on the NASDAQ Bulletin Board under the symbol
SGDM and on the Frankfurt Stock exchange under the symbol STZA.
StarGold Mines interim CEO and Director Marcus Segal commented,
"UniverCompany's assets, knowledge and personnel are a valuable
addition to StarGold. This acquisition is the first step in executing
our business plan, the unique knowledge and contacts of UniverCompany
management should be very helpful in identifying additional
opportunities similar to the Karalon deposit. Our goal is to enhance
shareholder value by adding proven resources to our portfolio of
properties. With only 41 million shares outstanding, we are well
positioned to make additional acquisitions of precious metals
properties in Russia and Eastern Europe."
About StarGold Mines: StarGold Mines Inc. is a U.S.-based gold
mining company which holds rights to develop and extract natural
resources. One hundred percent (100%) of its assets are located in
Europe, primarily in the Siberian and Far Eastern Federal Districts of
Russia. The company's strategy is to seek investment and acquisition
opportunities in Russia and Eastern Europe, with the aim of developing
a portfolio of natural resource opportunities attractive to Western
investors. Additional information can be found at
www.stargoldmines.com.
