Groundstar Resources Limited has now closed the second tranche of its short form prospectus offering by issuing an additional of 996,000 units at a price of $0.20 per unit (the "Units") for total gross proceeds of approximately $200,000 (the " Closing").

Each Unit consists of one common share in the capital of the Company (a "Common Share") and one half of one common share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder thereof to purchase one Common Share ("Warrant Share") at a price of $0.30 each at any time on or prior to July 18, 2014. The short form prospectus offering was conducted on a commercially reasonable effort basis through a syndicate of agents consisting of PI Financial Corp. and Canaccord Genuity Corp. (collectively, the "Agents").

In connection with the closing, The Agents' where granted 79,680 warrants exercisable into Common Shares at a price of $0.30 at any time prior to July 18, 2014.The Company expects to use the net proceeds to further the exploration and development activities of its oil and gas properties and for general corporate purposes. The Units were issued pursuant to the Company's short form prospectus dated December 19, 2012 (the "Prospectus").

Tags: Groundstar Resources Limited