Strike Minerals Amends Terms of $2,000,000 Private Placement
TORONTO, ONTARIO -- (Marketwire) -- 03/05/12 -- Further to its press release of February 29, 2011, Strike Minerals Inc. (TSX VENTURE: STK) ('Strike' or the 'Company') wishes to announce that it has amended the terms of the proposed best-efforts financing led by Euro Pacific Canada Inc. and including Foundation Markets Inc. to provide that the Company may issue any combination of flow-through units (at $0.15 per unit) and non flow-through units (at $0.125 per unit) for aggregate gross proceeds of up to $2,000,000. All other terms of the financing remain unchanged.
About Strike
Strike Minerals is a TSX-V listed company that is engaged in the exploration and development of precious metal properties in Canada. Its primary property is the former producing Edwards Gold Mine property in the Goudreau - Lochalsh Gold Camp near Wawa Ont. Historic production in the camp between 1930 and 2001 is estimated at 500,000 ounces. Between 1996 and 2001 underground development was completed through a decline to a depth of approximately 290 m and mining over the period resulted in 145,000 oz being produced from the Edwards property at an average grade of 0.39 oz/t. At present Strike has dewatered the underground workings to the 120m level and is commencing development on the 60m and 90m level with the plan to be in production by the end of 2012.
Subsequent drilling on the Property has delineated an additional five zones that have significant gold mineralization. Strike has commenced dewatering of the underground workings in order to provide access to enable underground drilling and bulk sampling of these new zones. The dewatering will also enable Strike to evaluate old stopes and high grade mineralization that was not mined when the mine was closed in 2001 due to low gold prices.
Strike also has a large land position in the Hemlo West area near Schreiber, Ontario. This Property has a number of historic producers that produced small tonnages of very high grade gold mineralization, averaging approximately 18-25 g/t Au, between 1935 and 1937, generally associated with shear zones in the region. The southern claims contain an extension of the Afric gold zone that Noranda Inc., in 1995-97, calculated a non-NI-43-101 compliant, near surface 'geological resource' of 2.0 million tonnes grading 2.20 g/t gold (140,000 ounces). This estimate was based on the completion of 20 drill holes. Strike is planning to conduct surface exploration and drilling to test the western extension of the Afric zone in 2012.
About Euro Pacific Canada Inc.
Euro Pacific Canada is an IIROC registered brokerage headquartered in Toronto, Ontario specializing in foreign markets, precious and strategic metals investing. The firm offers an integrated platform of investment banking, institutional sales and trading, research, and private client services following the advice laid out by Euro Pacific Capital's Chief Global Strategist, Peter Schiff, an internationally recognized economist and market strategist. Additional information is available at www.europac.ca.
About Foundation
Foundation is a Toronto-based boutique investment bank and corporate finance advisory firm licensed as an Exempt Market Dealer. The firm is focused on working with small and medium-sized companies with rapid growth potential, specializing in assisting pre-public clients in accelerating access to private capital and executing going-public transactions. Foundation also works with public companies on financing, mergers and acquisitions transactions, and strategic advisory services.
Forward-Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Strike, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing and exploration risk. There is no assurance that the company's exploration projects will add to Strike's resource base in the short-term, or at all. There is similarly no assurance that the financing will be completed on the terms proposed, or at all. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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.
Contacts:
Strike Minerals Inc.
Michael Newbury
(416) 487-4637
info@strikeminerals.com
Euro Pacific Canada Inc.
David Cusson
(416) 649-4271
david.cusson@europac.ca
Foundation Markets Inc.
Jeremy Goldman
(416) 777-6174
jgoldman@foundationmarkets.com