Canstar Receives Initial Cash and Share Consideration Under Golden Baie Option Agreement

Canstar Receives Initial Cash and Share Consideration Under Golden Baie Option Agreement

Canstar Resources Inc. (TSXV: ROX,OTC:CSRNF) (OTCID: CSRNF) ("Canstar" or the "Company") is pleased to announce that, further to its press release dated March 23, 2026, it has received the initial cash payment and common share consideration from Churchill Resources Inc. ("Churchill") in connection with the previously announced option agreement relating to Canstar's Golden Baie gold–antimony project located in Newfoundland (the "Golden Baie Project").

Pursuant to the option agreement, Canstar has received the following:

  1. Cash Payment: $208,167, representing reimbursement of existing cash bonds posted on the Golden Baie Project; and
  2. Initial Share Issuance: 15,834,097 common shares of Churchill, representing approximately 5.0% of Churchill's issued and outstanding shares on a post-issuance basis. The shares are subject to applicable statutory hold periods.

As previously disclosed, the option agreement provides Canstar with the right to receive up to an additional 4.99% ownership interest in Churchill, for a total of up to 9.99%, delivered in four subsequent tranches of approximately 1.25% each over the 24-month option period, subject to applicable regulatory requirements and share issuance limits.

Government of Newfoundland and Labrador – Junior Exploration Assistance Program

Canstar wishes to thank the Government of Newfoundland and Labrador Department of Industry, Energy and Technology for its support of the Company's exploration activities through a $150,000 grant under the Junior Exploration Assistance ("JEA") Program. The JEA Program provides financial assistance to junior mineral exploration companies conducting eligible exploration programs in Newfoundland and Labrador. This funding will support Canstar's ongoing exploration work at its Mary March Project in central Newfoundland. Canstar acknowledges the Government of Newfoundland and Labrador's continued commitment to advancing mineral exploration and economic development in the province.

About Canstar Resources Inc.
Canstar Resources Inc. (TSXV: ROX,OTC:CSRNF) is a mineral exploration company focused on the discovery of high-grade polymetallic deposits through technically rigorous exploration in proven mineral districts.

The Company's flagship asset is the Mary March Project, a large land package located approximately 20 km east of the historic Buchans Mining Camp in central Newfoundland, which produced some of the highest-grade volcanogenic massive sulphide ("VMS") deposits globally. Mary March hosts high-grade copper, zinc, gold and silver mineralization within volcanic rocks consistent with the host stratigraphy of the Buchans deposits. The project also features large hydrothermal alteration zones indicative of a significant mineralizing system. Despite its proximity to the Buchans camp, the property has seen limited modern exploration since the original discovery, leaving substantial portions of the system underexplored.

Canstar's exploration programs are supported by a technical team with extensive experience exploring for and advancing volcanogenic massive sulphide deposits globally.

The Company's exploration strategy combines district-scale geological targeting with disciplined exploration programs designed to identify new discoveries. In addition to Mary March, Canstar maintains exposure to potential value creation at the Golden Baie Project in Newfoundland through its option agreement with Churchill Resources Inc., including staged equity consideration and a retained 0.5% net smelter return royalty upon exercise of the option.

For further information, please contact:
Juan Carlos Giron, Jr.
President & Chief Executive Officer
Email: info@canstarresources.com
Phone: (647) 557-3442
Website: www.canstarresources.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information in this news release includes, but is not limited to, statements regarding: the anticipated issuance of any future equity tranches to Canstar under the option agreement; Churchill's ability to satisfy the expenditure and other conditions required to earn an interest in the Golden Baie Project; the anticipated benefits of the transaction to Canstar; and future exploration plans and activities.

Forward-looking information is based on management's expectations and assumptions, including, without limitation: that the parties will continue to satisfy the conditions contemplated by the option agreement; that required regulatory approvals will be obtained as necessary; that Churchill will be able to fund and carry out the required exploration programs; and that market conditions will remain supportive. Forward-looking information is subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information. Canstar undertakes no obligation to update forward-looking information except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/290500

News Provided by TMX Newsfile via QuoteMedia

ROX:CC
The Conversation (0)
canstar ceo

Canstar Resources

Revitalizing Gold Exploration in Newfoundland

Revitalizing Gold Exploration in Newfoundland Keep Reading...
Gold bars on financial charts and a notebook.

Top 5 ASX Gold Stocks in 2026

The gold price may have receded from the new all-time high above AU$6,860.28 per ounce set in Q1, but the yellow metal was still trading at historic highs in the third quarter.The gold bull market has been well-supported by a number of factors. Among them is the pervading geopolitical turmoil... Keep Reading...
Gold bars rest on overlapping Canadian banknotes, including denominations of 5, 10, 50, and 100 dollars.

Boroo Plans C$1.5 Billion Investment to Restart Yukon’s Eagle Gold Mine

Singapore-based Boroo has agreed to acquire Victoria Gold Corp. for up to C$140 million and plans to invest more than C$1.5 billion in the Eagle Gold Mine in Yukon, according to a Thursday (October 22) news release.The company will invest in environmental remediation, mine restart activities and... Keep Reading...
Gold bars on scale over red digital currency background. Text reads "Weekly Editor's Picks."

Editor's Picks: Gold Price Slips Below US$4,000, Expert Says US$3,600 Could be Next

It was a week of downward momentum for gold, which tumbled from above US$4,100 per ounce to below US$4,000 by the end of the period. Silver took a hit as well, sinking from close to US$58 per ounce to below US$54. Those prices represent important levels for both metals. Investors tend to focus... Keep Reading...
Gold bars arranged in rows.

Russia’s Gold Reserves Hit Lowest Level Since 2019

Russia’s gold reserves continued to shrink in September, with central bank holdings falling by approximately 62 metric tons since December 2025. The country’s gold holdings declined by 6.2 metric tons last month to approximately 2,264 metric tons, reaching their lowest level since 2019,... Keep Reading...
A gold house-shaped puzzle piece stands on a plain light gray background.

Infographic: A New US Home Now Costs Under 100 Ounces of Gold

From late 2025 through mid-2026, a median-priced new US home cost less than 100 ounces of gold in every quarter, the first time that’s happened since data collection began in 1963. The previous low came in 1980, at the end of gold’s 1970s run, when the figure bottomed out at exactly 100... Keep Reading...
The Brazilian flag on a green background overlays numerous gold bars; text reads: FINE GOLD 999.9 NET WT 1000g.

Belo Sun’s Volta Grande Gold Project License Temporarily Suspended

Belo Sun Mining (TSX:BSX,OTCQB:BSXGF) is in the midst of another legal challenge at its Volta Grande gold project in Brazil, where the Supreme Court has temporarily suspended the installation license pending approval of a settlement agreement.In a Wednesday (October 21) news release, the company... Keep Reading...

Interactive Chart

Latest Press Releases

Related News