Estrella Gold Corporation (CSRFF)

[chmcnfunds]

Estrella Gold Proposed Private Placement Financing

June 20, 2011 09:00 ET


TORONTO, ONTARIO--(Marketwire - June 20, 2011) - Estrella Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is pleased to announce a proposed non-brokered private placement offering of up to 6,200,000 units (each a "Unit") at $0.65 per Unit for gross proceeds of up to $4,030,000 (the "Offering"). Each Unit is comprised of one common share and one non-transferable warrant (each a "Warrant"). Each Warrant entitles the holder to purchase one common share at an exercise price of $1.05 per share during the first year following the date of closing of the Offering, or at a price of $1.20 during the second year following the date of the closing. In connection with the Offering, the Company may pay eligible persons (the "Finders") a finder's fee equal to up to 6% of the gross proceeds from the Units placed by the Finder in cash or Units and also issue up to 10% of compensation warrants (each a "Compensation Warrant") equal to 10% of the total number of Units placed through each Finder under the Offering. Each Compensation Warrant entitles the holder to acquire one common share of Estrella at $0.80 for a period of 24 months from the closing date of the Offering.

The proceeds of the offering will be used for:

(i) drill program of 1,800 metres at Colpayoc property;
(ii) accelerated property payments; and
(iii) working capital and general corporate purposes.
The securities issued pursuant to the Offering will all be subject to a 4 month regulatory hold period commencing from the date of closing. The Offering remains subject to TSX Venture Exchange acceptance of requisite regulatory filings.

About Estrella Gold Corporation (TSX VENTURE:EST) Estrella Gold is a "Prospect Generator" company focused on gold exploration and resource definition in Latin America. Estrella Gold has seven precious metal exploration projects in Perú and one in Chile. The Company has a growing gold resource at its Colpayoc Project in Perú (144,600 ounces NI 43-101 Inferred Resource) and is expanding its gold resource inventory. Estrella is also focused on making new mineral discoveries in Perú through an exploration alliance with Cliffs Natural Resources Inc.; and in the Dominican Republic with independent generative exploration programs. Mr. Keith A. Laskowski, MSc., is a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and has prepared, reviewed and verified the technical information contained in this news release. The Company has 17.3 million shares issued and outstanding on the TSX Venture Exchange (TSX VENTURE:EST). Further information is available at Estrella Gold's website: www.estrellagold.com.

STATEMENTS IN THIS NEWS RELEAE, OTHER THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.

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.
_________________________________________________________________
http://www.marketwire.com/press-release/estrella-gold-proposed-private-placement-financing-tsx-venture-est-1528771.htm

CSRFF