Newstrike Resources Ltd.
TSX VENTURE : NR

Newstrike Resources Ltd.

February 17, 2012 13:53 ET

Newstrike Resources Ltd. Announces Closing of Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Feb. 17, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Newstrike Resources Ltd. (TSX VENTURE:NR) ("Newstrike") is pleased to announce that it has completed its previously announced non-brokered private placement pursuant to which it has issued the maximum of 2,000,000 units ("Units") at a price of $0.185 per Unit to raise aggregate gross proceeds of $370,000. Each Unit consists of one common share and one-half of one share purchase warrant of Newstrike, with each whole such share purchase warrant entitling the holder thereof to acquire one additional common share of Newstrike for a period of 12 months at an exercise price of $0.27 per share, provided that if the closing price of the common shares of Newstrike is equal to or higher than $0.35 per share for a period of 20 consecutive trading days at any time after June 18, 2012, Newstrike may accelerate the expiry date of the Warrants to the 30th day after the date on which notice of the accelerated expiry date is announced via press release by Newstrike. All securities issued in connection with the private placement are subject to a hold period expiring June 18, 2012.

The private placement remains subject to the final approval of the TSX Venture Exchange.

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Newstrike, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Newstrike Resources Ltd.
    Donald T. Rankin
    416.628.6556