Newstrike Resources Ltd.
TSX VENTURE : NR

Newstrike Resources Ltd.

September 25, 2007 11:39 ET

Newstrike Acquires 25% Interest in Swansea Property

TORONTO, ONTARIO--(Marketwire - Sept. 25, 2007) - NEWSTRIKE RESOURCES LTD. (TSX VENTURE:NR) ("Newstrike") is pleased to announce that it has signed an agreement with Mr. Leonard Cunningham pursuant to which Newstrike will acquire a 25% interest in the property known as the Swansea property (the "Swansea Property") located along the Larder Lake Break in northeastern Ontario.

Under the terms of the agreement, Newstrike may acquire its undivided 25% interest in the Swansea Property by issuing an aggregate of 50,000 common shares within 10 days of receipt of all applicable regulatory approvals for the transaction, and by making a cash payment of $25,000. The 25% interest to be acquired by Newstrike pursuant to this transaction shall be subject to an aggregate 6.25% net proceeds of production royalty up to a maximum of $275,000 (calculated as a net proceeds of production royalty equal to 25% of the acquired 25% interest of any production generated from the Swansea Property)

In a related transaction, Newstrike also acquired an option to earn an additional 25% interest in the Swansea Property pursuant to an option agreement with NFX Gold Inc., as announced by Newstrike in a press release dated September 17, 2007 and available on SEDAR at www.sedar.com. Both the acquisition agreement with Mr. Leonard Cunningham and the option agreement with NFX Gold Inc. remain subject to TSX venture Exchange approval.

This release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that Newstrike believes, expects or anticipates will or may occur in the future, are forward-looking statements. Forward-looking statements reflect the current internal projections, expectations or beliefs of Newstrike based on information currently available to Newstrike. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by Newstrike with securities regulatory authorities, that may cause the actual results of Newstrike to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Newstrike.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Newstrike Resources Ltd.
    Don Rankin
    Director
    (416) 628-6556