Lucky Strike Resources Ltd.

TSX VENTURE : LKY
OTCQX : LKYSF


Lucky Strike Resources Ltd.

March 13, 2014 16:07 ET

Lucky Strike Resources Increases NFT Non-Brokered Private Placement from 3 Million Units to Up to 6 Million Units and Announces a Loan Facility Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 13, 2014) - Lucky Strike Resources Ltd. (TSX VENTURE:LKY)(OTCQX:LKYSF) ("Lucky") is pleased to announce it has increased the size of its NFT non-brokered private placement from 3 million units to up to 6 million units, pending exchange approval. The terms of the NFT units remain the same at $0.08 per unit. The size of the FT units remains the same at up to 3 million units.

The FT Unit are comprised of one common share ("Share") and one half of one (1/2) non-transferable Hard share purchase warrant ("NFT Warrant") at a price of $0.10. Each full NFT Warrant to be exercisable at $0.15 for a period of two years from the date of closing of the Transaction.

The NFT Units are comprised of one common share ("Share") and one (1) non -transferable Hard share purchase warrant ("Hard Warrant") at a price of $0.08. Each Hard Warrant to be exercisable at $0.13 for a period of two years from the closing of the Transaction.

In the event that the closing price of the Common Shares on the Exchange is $0.35 or more for 20 consecutive trading days at any time subsequent to the expiry of any statutory hold period, then the Issuer will earn the right, by providing written notice (the "Warrant Notice") to the warrant holders, to accelerate the expiry date of the FT Warrants and the NFT Warrants to the date which is the earlier of: (a) the date which is 30 days from the date of the Warrant Notice; and (b) the original expiry date.

Lucky is also pleased to announce, pending exchange approvals, 4,555,000 NFT units have been subscribed for, and 200,000 FT units have been subscribed for on the First Tranche of its recently announced non-brokered private placement. Total combined gross proceeds of both non-brokered placements is $384,400 CAD. The company will pay finders' fees for a total of $23,232.00 plus issue 368,450 broker warrants. Each broker warrant is exercisable into one common share at 13 cents for two years from closing.

The Company is also pleased to announce it has entered into loan facilities agreement with Jordan Capital Markets Inc., as to $75,000 and Jordan Ventures Ltd., as to $125,000, pending exchange approvals. The loans have a term of 90 days, carry a rate of interest of 12.00 per cent per annum and are secured by promissory notes in the principal amount of the loans, as well as a general security agreements executed by the company granting the lender security over all present, and after acquired real and personal property of the company. The lender has the right to convert all or any portion of the loans that are outstanding, at any time, into units of the company upon providing the company with three business day's written notice at a price of $0.09 cents per loan unit. Accrued and unpaid interest on the loan may be converted into loan units at any time by the lender at a price equal to the closing price of the company's shares on the date of delivery of any notice to convert by the lender to the company. Each loan unit will comprise one share and one non-transferable share purchase warrant of the company, entitling the holder to purchase one common share of the company for a period of two years from the date of issuance of the loan warrant at a price of $0.12 cents per loan warrant share, subject to the same acceleration clause as the warrants (outlined above).

The lender and the company have agreed that the lender may not convert the loans, or any accrued and unpaid interest on the principal amount of the loans, into a number of loan units which, assuming the immediate exercise of all loan warrants comprising such loan units, would cause the lender to be the registered owner of greater than 10 per cent of the then-issued and outstanding shares of the company. Both notes are due on June 12th, 2014.

In connection with the loan, the company has entered into a Corporate Finance Advisory Agreement with Jordan Capital Markets (Jordan). In payment of the services to be rendered herein, the Company shall pay to Jordan an engagement fee of $15,000 plus Goods and Services Tax and issue Jordan 150,000 common shares in the capital of LKY. The term of this agreement is 2 months.

The company intends to use the loan proceeds to meet its expenditure requirements on its option to acquire a 25-per-cent interest in the Western Athabasca Syndicate, and for general working capital purposes.

About the Western Athabasca Syndicate:

The Western Athabasca Syndicate Partnership is a strategic partnership formed between Lucky Strike et al, to explore and develop a 287,130 hectare suite of uranium properties that is one of the largest land positions along the highly prospective margin of the Western Athabasca Basin

Under the terms of the agreement, each of the four companies has an option to earn 25% of the five uranium properties comprising the Western Athabasca Syndicate Partnership by making a series of cash payments, share payments, and incurring their pro-rata amount of the total $6,000,000 in exploration expenditures over the two-year earn-in term of the agreement. The bulk of the Syndicate land package is bisected by all-weather Highway 955 which runs north through the PLS discovery on to the former Cluff Lake uranium mine.

The Athabasca Basin of Saskatchewan hosts the world's largest and richest high-grade uranium deposits. The Patterson Lake area has received escalating exploration attention and claim acquisition activity.

Drilling of initial targets has begun today, March 13, 2014.

Lucky Strike Resources Ltd., The Company has 45,081,836 shares outstanding. To find out more about Lucky Strike Resources Ltd. (TSX VENTURE:LKY)(OTCQX:LKYSF) visit the Company's website at www.luckystrikeresources.com.

On behalf of Management

Lucky Strike Resources Ltd.

Ron Rieder, CEO, President & Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain certain "Forward- Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

Contact Information

  • Lucky Strike Resources Ltd.
    Ron Rieder
    President and CEO
    604-681-8225 or Cell: 604-727-4653

    Lucky Strike Resources Ltd.
    Derek Huston
    Investor Relations
    604-657-5539
    www.luckystrikeresources.com