Weststar Resources Corp. (TSX-V:WER - News) (Frankfurt:HN3 - News) (the "Company") is pleased to announce the signing of a non-binding Memorandum of Understanding ("MOU") with KS Resources ("KS") of South Korea. The agreement provides KS Resources the right to negotiate an off-take agreement to purchase an agreed upon percentage of Weststar's Coal licenses in the Canadian Arctic. In addition, KS will be granted first right of refusal on any option, joint venture or buyout agreement related to the Company's Canadian Arctic coal properties. If finalized, the transaction would be facilitated by cash purchase or through the purchase of common shares in Weststar Resources.
The agreement with KS is subject to completion of due diligence by KS, execution and delivery of definitive agreements within a reasonable timeframe, and receipt of certain regulatory approvals including that of the TSX Venture Exchange (the "Exchange").
KS are current shareholders of the Company, having purchased 3.5 million units of Weststar by means of the recently closed private placement (see NR June 18, 2009).
Weststar President Mitchell Adam states: "We are delighted to be associated with KS Resources, as this partnership will help realize our vision of having a tide water coal operation in the Canadian arctic. The abundant coal resources in the Canadian Arctic brings with it the potential to serve as a source of energy for Canada, Europe and Asia for a number of years to come."
"Neither 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." WARNING: The Company relies on litigation protection for "forward-looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company.
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