Newstrike Capital to acquire 100% interest in Ana Paula
Ticker Symbol: C:NES

Newstrike Capital to acquire 100% interest in Ana Paula

Newstrike Capital Inc (C:NES)
Shares Issued 67,012,877
Last Close 5/13/2010 $0.475
Friday May 14 2010 – News Release

Mr. Richard Whittall freports

NEWSTRIKE SIGNS DEFINITIVE AGREEMENT TO ACQUIRE ANA PAULA PROJECT FROM GOLDCORP

Newstrike Capital Inc. (TSX VENTURE:NES) (“Newstrike” or the “Company”) – www.newstrikecapital.com – is pleased to announce it has entered into a definitive agreement dated May 11, 2010 to acquire 100% of the “Ana Paula Project” from Desarrollos Mineros San Luis, S.A. de C.V. (“DMSL”), a wholly-owned subsidiary company of Goldcorp Inc. (TSX:G, NYSE:GG).

Ana Paula is an advanced exploration stage gold project, located in the north-central part of the State of Guerrero in southern Mexico. The Ana Paula Project consists of two contiguous and two discrete concessions covering 7,622 hectares that collectively comprise internal claims to Newstrike’s existing land position. Newstrike’s entire land position in the Guerrero Gold Belt (“GGB”) now covers just over 88,952 contiguous hectares.

Beginning in 2004, Goldcorp conducted exploration programs on Ana Paula including geophysics, mapping and geochemistry,  Aresulting in the discovery of a 1.0 kilometre by 2.0 kilometre wide area of gold mineralization at surface. portion of this large mineralized area was drill tested in 2005 with a 3,689 meter, 11-hole diamond drill program that has confirmed the gold mineralization potential of the area.

Richard Whittall, President & CEO of Newstrike, commented: “Newstrike is pleased and excited by the acquisition of the Ana Paula Project, an advanced exploration project that we look forward to developing through aggressive exploration and drilling. Our management team has a long history formulating and developing the original GGB concept. Today, it is gratifying to see published NI43-101 compliant inventories of over 15 million ounces of gold in all categories, including from Goldcorp’s Los Filos gold mine and the El Limon deposit currently under development by Torex Gold Resources Inc. The GGB is now a firmly established gold camp where new discoveries are being actively pursued by Newstrike, Goldcorp, Torex and La Camera Mining Inc. Newstrike continues to hold a dominant strategic land position within the GGB that we will continue to advance towards discovery.”

As consideration for the acquisition of the Ana Paula Project, Newstrike will pay to DMSL $1.5 million in cash and a number of common shares in Newstrike having a value of $600,000, such shares to be issued at a price that is based on the higher of the volume weighted average trading price of the shares of Newstrike on the TSX Venture Exchange for the 20 consecutive trading days ending on the trading date prior closing or the closing price of Newstrike’s common shares on the date the transaction was approved. The TSX Venture Exchange approved the transaction on April 28, 2010 and closing of the transaction is expected on or before June 30, 2010.

May 14th, 2010
Categories: Uncategorized . Author: admin