Gold Capital announces Royalstar commits to exercise option for major equity position

Business Wire, May 31, 1995

DENVER--(BUSINESS WIRE)--May 31, 1995--Gold Capital Corp. (Bulletin Board: GOCP), a Colorado corporation headquartered in Denver, announced today that Royalstar Resources Ltd., a Canadian public company listed on the Vancouver Stock Exchange, has irrevocably committed to exercise its option to purchase an additional 2.2 million shares of common stock for US$2.2 million, as provided in the previously announced option agreement.

Royalstar presently owns 300,000 shares of Gold Capital.

Upon closing, which will take place within 20 business days, Royalstar will own approximately 52% of the outstanding common shares of Gold Capital and will have the right to designate a majority of the members of the board of directors.

Effective upon closing of the transaction, John Young, who is president of Royalstar, will become president, chief executive officer and chairman of the board of directors of Gold Capital.

Gold Capital's primary asset is its 60% ownership interest in the Tonkin Springs project which includes a milling complex and related infrastructure, and an estimated gold resource of 650,000 ounces of which 418,000 ounces are currently estimated to be minable.

The Tonkin Springs project holds approximately 24 square miles on the prolific Cortez Gold Trend in Nevada. The company also holds mineral claims encompassing approximately 270 square miles in Argentina.

CONTACT: Gold Capital Corp., Denver

303/322-7918