Newstrike Capital Announces Private Placement and Provides Update on Ana Paula Acquisiton
Newstrike Capital Announces Private Placement and Provides Update on Ana Paula Acquisiton.
Vancouver, B.C., June 22, 2010 – Newstrike Capital Inc. (TSX-V: NES) (“Newstrike” or “the Company”) – www.newstrikecapital.com – is pleased to announce a non-brokered private placement of up to 12,500,000 units at a price of $0.40 per unit for cash proceeds of up to $5,000,000. Each unit is comprised of 1 common share and 0.5 of a share purchase warrant. Each whole warrant will entitle the holder to acquire a common share of the Company at $0.80 per common share for a period of 18 months from the date of issue. A 7% finders’ fee may be payable on all or a portion of the offering.
The proceeds will be used to fund near-term exploration activities on the Company’s Aurea Norte project in the State of Guerrero and for general working capital purposes. This private placement is subject to regulatory approval, and the common shares, together with the shares issued on the exercise of the warrants, will be restricted from trading for a period of four months from the date of issuance of the units, in compliance with TSX Venture Exchange policies and securities legislation.
Ana Paula Acquisition
The Company is pleased to advise that its acquisition of a 100% interest in the Ana Paula mining concessions from Goldcorp Inc. (TSX:G, NYSE:GG) is nearing completion. The acquisition, initially announced March 3, 2010, received regulatory approval on April 28, 2010 and a definitive agreement was entered into on May 11, 2010. Final documentation could be signed and registered as early as June 23, 2010.
The 4 concessions that make up the Ana Paula properties, which comprise 7,662 hectares, are all internal to Newstrike’s existing land position and complement the Company’s 81,000 hectares of highly prospective mineral claims in the immediate area.
About Newstrike (TSX-V: NES)
Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Current management and directors co-discovered Goldcorp’s and Teck’s significant discoveries in the Guerrero Gold Belt in Guerrero State, currently in advanced stages of exploration and production.
Newstrike holds a 100% interest in certain exploration properties in Mexico located within two established mining districts; the gold bearing oxidized iron skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic Ag-Au-Cu rich epithermal camp of the mining districts of Oaxaca State, and is increasing its position as strategic opportunities present themselves.
For further information contact:
Richard O’C. Whittall
Chief Executive Officer
Phone: 604.604.4654
