Coltstar Ventures Inc. Announces Corporate Update
Coltstar Ventures Inc. (CTR – TSX Venture), wishes to correct its public disclosure record respecting the grant of certain incentive stock options announced on September 20, 2010.
On September 20, 2010, the Company announced that it had granted up to 2,000,000 stock options to directors, officers and consultants of the Company at an exercise price of $0.75 per share, exercisable for a period of five years (the “September Options”).
The Company did not proceed with the grant of the September Options, as it erroneously believed that confirmations it had obtained from each of the board members respecting these option grants were sufficient to effect the issuance of the September Options. However, while each board member had individually confirmed his approval of the option grants to management, approval of the option grants by the board members at a properly convened meeting of the board was required to effect their grant as a matter of corporate law, and this step was not taken.
The Company did not recognize the flaw in the procedures it had followed to grant the September Options prior to the preparation and approval of its unaudited interim financial statements for the period ended September 30, 2010, and the error was reflected in these interim financials and related MDA. The error in the procedures relating to the grant of the September Options was discovered during the preparation of the financial statements for Coltstar’s financial year ended December 31, 2010, when it was noted that there were no meeting minutes relating to the issuance of the September Options. Consequently, the audited financial statements for the year end correctly indicate that the options were not in fact granted.
Coltstar Ventures Inc. is a mineral exploration company that is currently exploring for iron ore and precious metals in Europe and Canada.
On behalf of the Board of Directors
Chairman, President and CEO of Coltstar Ventures Inc.
For further information please contact:
Telephone: (604) 683-8236
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 release.