TEXAS STAR RESOURCES CORPORATION ANNOUNCES AGREEMENT
TEXAS STAR RESOURCES CORPORATION ANNOUNCES AGREEMENT HOUSTON, June 16 /PRNewswire/ -- Further to its news releases
dated May 19 and June 3, Texas Star Resources Corporation ("Texas Star") (Vancouver: TXS) announces that the formal contractual documents have been prepared in draft form and are being reviewed regarding the acquisition of Diamond Exploration Inc. ("DEI"). The formal agreement with Continental Precious Minerals Inc. ("CPM") to purchase the 70 percent of issued shares in Continental Diamonds Inc. ("CDI") is currently being prepared.
As mentioned in the company's news release dated June 3, 1992, upon the completion of the acquisition of DEI and CPM's interest in CDI, Texas Star will own 100 percent of the shares in CDI. CDI is one of four companies that has been granted the right to jointly conduct exploration on the Crater of Diamonds by the State Parks, Recreation and Travel Commission of the State of Arkansas (the "Commission"). Upon the completion of this exploration program, the ability to commercially develop the Crater of Diamonds is subject to the discretion of the Commission as they control the mineral rights. The Commission has been advised of the proposed acquisitions and a formal submission regarding the acquisitions will be made to it shortly. As also stated in the news releases dated May 19 and June 3, Texas Star is continuing its due diligence with respect to the acquisition of DEI. The acquisition of DEI and the interest of CPM in CDI is subject to all necessary regulatory approvals. DEI also has options or a right to lease three properties from private mineral owners which are located outside the Crater of Diamonds State Park. These interests of DEI's are being currently reviewed by Texas Star and planning is in progress to construct a diamond recovery pilot plant to process bulk samples of diamondiferous lamproite from these properties. In an article in the Arkansas Democrat-Gazette this date, John Morgan, Project Director for testing done at the Crater of Diamonds states the sixth core hole funded by the four companies penetrated solely lamproite (the diamond bearing rock) to a total depth of 640 feet. Additionally, Morgan said, "I can't say how much bigger the crater is. That one hole doesn't tell us anything about the shape. It (the crater) could be 20 percent, 50 percent or 100 percent bigger." As stated in the news release dated June 3, Texas Star has an option from CPM to earn 51 percent of the interest held by CPM in the area of interest in Ontario diamond exploration contemplated in the British Petroleum Resources Canada and CPM Joint Venture Agreement dated June 1, 1992 by the expenditure of $750,000 (Cdn.) on such properties over a two-year period. The negotiations are progressing with a third party to acquire a major interest in approximately one million acres of certain diamond mineral properties located north of the Diamet discoveries in the Northwest Territories. Texas Star Resources Corporation is listed on the Vancouver Stock Exchange under the symbol TXS. -0- 6/16/92 /CONTACT: W.H. Tonking of Texas Star Resources Corp., 713-682-4070/ (TXS.) CO: Texas Star Resources Corporation ST: Texas IN: MNG SU: CH -- LA022 -- 0823 06/16/92 16:36 EDT
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|Date:||Jun 16, 1992|
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