VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 15, 2008) - Abbastar Uranium Corp. (the "Company" or Abbastar) (TSX VENTURE:ABA) is pleased to announce a non-brokered private placement of 2,000,000 units ("Units") at a price of $0.16 per Unit for gross proceeds of $320,000. Each Unit will consist of one common share and one common share purchase warrant. One common share purchase warrant entitles the holder to acquire one additional common share of the Company at a price of $0.21 for a period of one year. There is no finder's fee payable in connection with this private placement. The private placement is subject to acceptance for filing by the TSX Venture Exchange (the "Exchange").
The Company has entered into an investor relations agreement with Carlyle Capital Corporation ("Carlyle") of Vancouver, British Columbia. Pursuant to the agreement, the investor relations services will commence on July 15, 2008. The term of the agreement is for nine months. Carlyle will be paid a monthly fee of $10,000 plus applicable taxes, will be reimbursed reasonable expenses up to $1,000 per month and will be granted 275,000 stock options. The agreement and the stock option grant are subject to regulatory approval. The options will vest over a period of one year.
Mr. Mark MacDonald was appointed to the Company's board of directors at the annual general meeting on July 10, 2008. Mr. MacDonald is a longtime successful Toronto businessman and lawyer who presently is Corporate Counsel for BMG BullionFund. BMG BullionFund is a mutual fund which invests only in gold, silver and platinum bullion. Mr. MacDonald is also a Director of the Limited Market Dealers Association of Canada and he has been a Limited Market Dealer specializing in marketing investment opportunities to sophisticated investors since the designation was first created in Ontario in 1985.
At the annual general meeting the shareholders also approved the Company's new share option plan (the "Plan"). The Plan increased the number of shares reserved for issuance from 10% of outstanding shares of the Company to 2,500,000 shares, being the number of shares representing just under 20% of outstanding shares at the date of the meeting. The Plan is subject to the acceptance by the Exchange.
The Company also announces the termination of the letter of intent announced on May 28, 2008.
The management of the Company considers changing the name of the Company to Abbastar Resources Corp.
About this company Abbastar Uranium Corp.