Highlights
Polar Star, via a 100% owned Barbados subsidiary, owns 100% of the Chilean company, Minera Polar, which in turn has an earn-in agreement on the Project.
Per the terms of the MoU, Polar Star will receive US$250,000 from Xtract in exchange for Xtract having the exclusive right to conduct due diligence on the Project for a four month period.
At any time prior to the end of the four month period, should Xtract wish to acquire Polar Star’s interest in the Project, both Xtract and Polar Star will enter into negotiations to complete a Definitive Sale Agreement (subject to the approval and consent of the Boards of the Companies and securities regulators).
Polar Star will advance all of the funds received from Xtract to discharge a portion of its outstanding obligations related to the earn-in agreement.
Polar Star, via a 100% owned Barbados subsidiary, also owns 100% of the Mejillones phosphate property (‘Property’) located near the city of Antofagasta in Northern Chile, a phosphate development project covering 15,800 hectares.
Upon execution of a Definitive Agreement for the acquisition of the Project, the previously proposed JV agreement between the Company and Xtract for the Property will be cancelled and Xtract will own 100% of the Property.
Related Party
Colin Bird, Director and Chief Executive Officer of Polar Star is also Executive Chairman of Xtract. Mr. Bird has an insignificant interest in the issued share capital of Polar Star and Xtract. Nonetheless, Mr. Bird has recused himself from any involvement, discussion or review process with the Board of Polar Star Mining Corporation.
