GlobeStar Announces Proposed Cdn.$1.65 Per Share Cash Offer by Perilya

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GlobeStar Mining Corporation (TSE:GMI) announced that it has entered into a binding agreement with Perilya Limited, pursuant to which Perilya has agreed, subject to the satisfaction of certain terms and conditions of the Letter Agreement, to enter into a further definitive support agreement and make an offer to acquire all of the outstanding common shares of GlobeStar by way of a take-over bid for CDN$1.65 per common share in cash.

GlobeStar Mining Corporation (TSX:GMI) announced that it has entered into a binding agreement with Perilya Limited, pursuant to which Perilya has agreed, subject to the satisfaction of certain terms and conditions of the Letter Agreement, to enter into a further definitive support agreement and make an offer to acquire all of the outstanding common shares of GlobeStar by way of a take-over bid for CDN$1.65 per common share in cash.

The press release is quoted as saying:

The Offer represents a 29.9% premium to the closing market price on the Toronto Stock Exchange (the “TSX”) of GlobeStar common shares on October 6, 2010 and a premium of 36.5% to the 20-day volume weighted average price of GlobeStar common shares on the TSX.

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