Luiri Gold Limited

Luiri Gold Limited

April 16, 2007 08:30 ET

Luiri Enters Into a Strategic Alliance With Strata Capital

Luiri Gold Limited ("Luiri") and Strata Capital UK LLP ("Strata") have signed a Memorandum of Understanding under which Strata will support the strategy of Luiri to grow the company into a geographically diversified African gold resource company. Strata will initially raise up to C$4million through a private placement to finance Luiri's current growth program and evaluate new acquisition opportunities. Mr. Ted Grobicki has also agreed to join the Board of Luiri as Chairman.

TORONTO, ONTARIO--(CCNMatthews - April 16, 2007) - Luiri Gold Limited (TSX VENTURE:LGL) announced that it has entered into a Memorandum of Understanding with Strata Capital UK LLP, a London based partnership to support the strategy to expand into a geographically diversified African gold resource company with assets potentially ranging from producing mines and near term production to exploration properties (the "Strategy"). In line with this strategy, Luiri will attempt to acquire a producing mine or near term producing project within the next six to twelve months (the "Major Asset"). Luiri will have an experienced and respected management team and market support through Strata to implement the Strategy.

"The support that Strata and its associated investors will bring to Luiri and its ability to deliver on the Strategy is a major boost to the Company. It should allow us to fast track the original Luiri strategy by a number of years," commented Mike Sperinck, President and CEO of Luiri Gold. "Furthermore, having Ted Grobicki join the Board as Chairman has significantly strengthened our Board and our ability to deliver on this Strategy. It is a particular pleasure to welcome Ted as I have known and worked with Ted in my earlier years with Randgold Resources."

As part of the alliance, Strata will undertake a private placement of up to C$4 million of units at a price of $0.34 per unit. The net proceeds from the private placement will be used to continue the exploration at the Luiri Hills Project (for 8 months), identify the Major Asset(s), undertake a technical review of the new Projects, and for general working capital purposes.

Luiri has appointed Mr. Ted Grobicki as Chairman of the Board. Mr. Grobicki brings many years of experience to the Board. He retired in May 2006 from the position of Executive Director at Harmony Gold Mining Company, the fifth largest gold mining company in the world, where he had held several senior executive roles in South Africa, Australia and Canada respectively. He was part of the team that envisaged and executed the strategies and actions which transformed Harmony from a lease-bound loss-making company into one of the largest and most dynamic integrated gold mining enterprises in the world.

Strata Capital UK LLP is a London based investment partnership specializing in investments in the mining and metals sector run by Mr. Michael Haworth. Prior to founding Strata, Mr. Haworth was a Managing Director at JPMorgan in London and was responsible for the mining and metals team. Mr. Haworth has extensive experience in global mining M&A transactions.

In addition to providing financial support for the company, Strata will also offer a number of gold exploration projects in Africa over which it has control to Luiri for purchase based on a fair and reasonable market value being agreed.


Strata will undertake a private placement for up to C$4 million of units of Luiri (the "Private Placement"). Each Unit will consist of one common share and one-half of one common share purchase warrant. Each warrant will be exercisable for one common share for a period of two years at a price of $0.51 per share. Luiri will pay Strata a finder's fee equal to 7.5% of the gross proceeds of the Private Placement received by Luiri. Such finder's fee shall be payable at the closing(s) of the Private Placement. The Private Placement, which is expected to close by early May, remains subject to, among other things, the receipt of requisite regulatory approvals.

About Luiri Gold

Luiri Gold is an African-focused resource exploration company with the previously stated strategy of creating shareholder value through the discovery and exploitation of gold and copper-gold ore deposits in Africa. Luiri Gold's wholly-owned Zambian subsidiary, Luiri Gold Mines Limited, holds mineral tenements within southern-central Zambia covering approximately 2,400km2 of exploration ground focused on the historic Dunrobin and Matala gold mines. The Luiri Hill Project is situated approximately 120km west-northwest of the Zambian capital of Lusaka in Zambia's Central Province. Access to the Project area is by a newly-upgraded bitumen road from Lusaka.

Luiri Gold's mineral tenements and the resource estimate are the subject matter of a Technical Report dated February 6, 2006 prepared pursuant to National Instrument 43-101 by Snowden Mining Industry Consultants Pty. Ltd. and entitled "Independent Technical Report on the Mineral Assets of Luiri Gold Mines Ltd.", available for review under the Company's profile at


Michael Sperinck, President

Disclosure Regarding Forward-Looking Information

This press release contains forward-looking information which involve risks and uncertainties. Forward looking information represents management's current views and these may change significantly as new information comes to hand.


Contact Information

  • Luiri Gold Limited
    Michael Sperinck