Eagle Star Minerals Corp. (TSX-V: EGE and OTC Other: ELGSF) announced today the Company has received notification from the TSX Venture Exchange for closing of its previously announced, oversubscribed non-brokered private placement as per the company’s press releases dated June 16 2011, July 15, 2011 and July 29, 2011. The Company received $3,061,819 million dollars and will issue 13,917,360 units. Each unit was priced at $0.22 per unit and consists of one share and a half share purchase warrant, exercisable at a price of $0.32 per share for a period of two years from closing.
In the release, Eran Friedlander, President and CEO of Eagle Star stated: “We are extremely pleased about reaching yet another milestone. The proceeds of the current financing will allow the company and its extremely capable local team to continue carrying out our strategy of building a strong mining company with a diversified portfolio of high quality mineral assets having a focus on Brazil.”
This really is great news for Eagle Star as it puts them in a position to move forward exploration/resource delineation operations at the Company’s Ruth Phosphate/Potash prospect as well as it’s Angico iron ore prospect, both located in the state of Piaui, Brazil. Following this financing we expect that a steady stream of development news will commence from this well positioned group with two high potential projects in Brazil.
To get a better sense of what could be in store for the phosphate/potash marketplace, we recommend a recent article penned by one of our favorite prognosticators, Mr. Jeremy Grantham, top dog at multi-billion dollar investment fund GMO, who speaks to the future demand dynamics of agri-minerals such as phosphate and potash, and how these two key materials figure into the grand scheme of future population growth, food demand and escalating commodity prices. Here is a link to the article (which also discusses in detail future energy demand/supply dynamics):