Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

October 01, 2010 15:50 ET

Newstrike Capital Announces Private Placement and Provides Update on Ana Paula Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2010) - Newstrike Capital Inc. (TSX VENTURE:NES) www.newstrikecapital.com – is pleased to announce a non-brokered private placement as a follow to its private placement that closed on July 21, 2010. This private placement will be for of up to 5,000,000 units at a price of $0.40 per unit for cash proceeds of up to $2,000,000. Each unit is comprised of one common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to acquire an additional 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.

About Newstrike

Newstrike 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 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information