Newstrike Resources Ltd.

Newstrike Resources Ltd.

August 05, 2005 10:40 ET

Newstrike Resources Ltd. Announces Completion of Initial Public Offering

TORONTO, ONTARIO--(CCNMatthews - Aug. 5, 2005) - Newstrike Resources Ltd. is pleased to announce that it has completed an initial public offering by issuing 1,875,000 units and 1,000,000 flow-through common shares to raise gross proceeds of $1,150,000. Each unit consists of one common share and one common share purchase warrant, each such share purchase warrant entitling the holder thereof to acquire one additional common share at a price of $0.60 until August 5, 2007, provided that if following December 6, 2005, the closing price of the common shares on the principal stock exchange on which such shares trade exceeds $0.90 for 15 consecutive trading days, then the expiry date shall be automatically accelerated to 5:00 p.m. (Toronto time) on the date that is 30 days following the issuance of a press release announcing the accelerated expiry time.

Jones, Gable & Company Limited acted as agent in the offering and exercised the full over-allotment option. Following the completion of the offering, Newstrike has 9,275,000 common shares issued and outstanding. Newstrike has received conditional approval to list its common shares and share purchase warrants on the TSX Venture Exchange, and trading is expected to commence at the opening of business on August 8, 2005. The common shares will trade under the symbol "NR" and the warrants will trade under the symbol "NR.WT".

Newstrike is a mineral exploration company focused on the acquisition, exploration and development of properties for the mining of precious and base metals and other minerals. Newstrike currently holds an option to acquire, together with Gowest Amalgamated Resources Ltd., a 100% interest (subject to certain royalty interests) in the property known as the Wawa Property aggregating approximately 1,718 hectares located within Keating Township, Keating Additional Township and the unorganized territory known as the Abbie Lake Area in the Province of Ontario. Newstrike also holds an option to acquire a 100% interest in the property known as the Cunningham Property located in the Larder Lake Mining Division in the Province of Ontario. Proceeds of the offering will be used to further explore the Wawa Property and the Cunningham Property, to search for and acquire additional mineral properties, for debt repayment and for other general corporate purposes.

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

Contact Information

  • Newstrike Resources Ltd.
    Mr. John Pollock
    President
    (416) 628-6556
    (416) 605-3666 (FAX)