Vancouver, BC, Canada, March 31, 2011 - Megastar Development
Corporation ("Megastar"
or the "Company")
(TSX-V: MDV;
Frankfurt: M5Q) announces
that the board of directors of the Company (the "Board")
has determined to proceed with the proposed share consolidation
previously approved by shareholders at the Special Meeting of
Shareholders of Megastar (the "Meeting") held on December
20, 2010. At the Meeting, shareholders approved a share
consolidation, at the discretion of Company's management and the
Board, on the basis of one (1) new post-consolidation Megastar share
for up to every six (6) pre-consolidation Megastar shares
outstanding.
The Board has unanimously
resolved to implement the consolidation ratio of one (1) new
post-consolidation common share for every four (4) pre-consolidation
common shares (the "Share Consolidation"). Once complete,
the 42,127,233 issued common shares currently outstanding will be
reduced to 10,531,808 common shares (as at the date of this release).
No fractional common shares will be issued as a result of the Share
Consolidation. The exercise price and the number of common shares
issuable under any outstanding convertible securities of the Company,
including outstanding incentive stock options and common share
purchase warrants, will be proportionately adjusted once the
transaction is complete.
The Company's common
shares will continue to be traded on the TSX Venture Exchange under
the symbol "MDV" on a post-consolidation basis. The
consolidation of the Company's shares is subject to all necessary
regulatory approvals, including that of the TSX Venture Exchange.
Appointment of New
director
The Company announces that Richard Roy, P. Geo has resigned as
a director of the Company in order to focus on other professional
commitments and business interests. The Company has appointed Andrew
Lee to its Board to fill the vacancy created by Mr. Roy's
resignation.
Mr. Lee holds a Bachelor of Science degree from the University
of British Columbia and has been working as a self-employed
consultant to mineral exploration companies for the past six years, assisting
with financings and corporate development. Recently, Mr. Lee served
as a director of Plains Creeks Mining Limited, a private company that
went public through a reverse takeover of Resource Hunter Capital
Corp., listed on the TSX Venture Exchange. Currently, Mr. Lee is
working on plans to take Four Rivers Resources Inc., an industrial
company focused on forest products, public later this year. The
Company wishes to thank Mr. Roy for his valuable contribution and
technical assistance to the Company over the past seven years and
wishes him the very best in his future business endeavours,
and welcomes Mr. Lee to the Board.
ABOUT MEGASTAR DEVELOPMENT CORP.
Megastar Development Corp. is an emerging
resource company engaged in the acquisition, exploration and
development of mineral properties in Canada..
Megastar owns gold and base metal properties in Quebec and British
Columbia. For further information, investors and shareholders
are invited to visit the Company's website at www.megastardevelopment.com or call the office at 604-683-6648.
ON BEHALF OF THE BOARD OF DIRECTORS
"DUSAN BERKA"
Dusan Berka, P. Eng.
President & CEO
Neither the 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 news release.
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