Blue Star completes acquisition of the Ulu gold property

10 February 2020

Blue Star Gold Corp. is pleased to report the Company has completed the acquisition of the Ulu Gold Property (the “Ulu”) from Mandalay Resources Corp. (“Mandalay”). Supplementing its high-grade gold resources, the Ulu includes a substantial inventory of capital equipment, a Weatherhaven camp with shop and a 1,200 m long airstrip. The mineral rights in the form of a Crown mining lease were transferred on January 7, 2020 to Blue Star. The Kitikmeot Inuit Association (the “KitIA”) agreed on October 1, 2019 to transfer surface access in the form of a land use licence, and on September 10, 2019 the Nunavut Water Board (“NWB”) authorized the assignment of the Ulu Water Licence 2BM-ULU1520 to Blue Star.
Through the final steps in the Ulu acquisition process, Blue Star has:

  • Paid to Mandalay the final payment of $450,000 in cash upon transmittal of the Ulu mining lease to Blue Star Gold;
  • Arranged for an arm’s length third party to purchase Mandalay’s 5,000,000 Blue Star shares; • Posted remediation security required by the KitIA and the NWB in the amounts of $750,000
  • and $1,685,542 respectively;
  • Assumed future reclamation and monitoring obligations associated with Ulu in a manner satisfactory to the KitIA and the NWB; and,
  • Received from Mandalay the transfer of $1,685,542 that was released by the Crown Indigenous Relations and Northern Affairs Canada respecting Mandalay’s remediation account for the Ulu in relation to the water licence.

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