Newstrike Capital Inc.

Newstrike Capital Inc.

December 02, 2009 08:30 ET

Newstrike Capital to Acquire 21.2% Interest in Morelos Project From Goldcorp Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 2, 2009) -


Newstrike Capital Inc. (TSX VENTURE:NES.H) ("Newstrike" or the "Company") - - is pleased to announce it has entered into an agreement dated December 1, 2009 to acquire 21.2% of the Morelos Project from Desarrollos Mineros San Luis, S.A. de C.V. ("DMSL"), a wholly-owned subsidiary company of Goldcorp Inc. (TSX:G, NYSE:GG) for a purchase price of not less than $52 million comprised of $44.5 million in cash and 15 million common shares in Newstrike.

DMSL owns a 21.2% interest in the capital of Minera Media Luna S.A. de C.V., holder of the concessions comprising the Morelos Project. DMSL's 21.2% interest is represented by 7.2034% Class A 'participating' shares and by 14% Class G 'carried' shares in the Morelos Project.

The Morelos Project is an advanced stage gold exploration property located in the state of Guerrero, approximately 180 km to the southwest of Mexico City. The Morelos Project consists of a group of 7 claims, totaling 29,046 hectares (ha). Gleichen Resources Inc. (TSX Venture: GRL) has recently become operator of the Morelos Project.

Richard Whittall, President & CEO of Newstrike commented: "Our management team has a long history of discovery in the Guerrero Gold Belt. This acquisition represents an exciting development in Newstrike's future and it certainly complements our 81,000 hectares of highly prospective mineral claims in the immediate area."

Closing of the transaction is expected in early 2010 and is subject to receipt of all required shareholder, regulatory and third party consents, satisfaction of customary closing conditions and the completion by Newstrike of a financing to raise net proceeds of $50 million. In addition, Gleichen Resources Ltd. has a right of first refusal in respect of DMSL's interest in the Morelos Project, exercisable for 90 days from the date it is advised of the terms of the Newstrike agreement.

It is expected that the financing will proceed by way private placement of subscription receipts. Further details of the financing will be provided once determined.

Woodstone Capital Inc. acted as financial advisors to Newstrike.

About Newstrike (TSX VENTURE:NES.H)

Newstrike Capital Inc. 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.

Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.

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