Newstrike Resources Ltd.
TSX VENTURE : NR

Newstrike Resources Ltd.

October 17, 2013 14:45 ET

Newstrike Resources Ltd. Closes Final Tranche of Private Placement Financing

TORONTO, ONTARIO--(Marketwired - Oct. 17, 2013) -

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

Newstrike Resources Ltd. (TSX VENTURE:NR) ("Newstrike" or the "Company") is pleased to announce that it has closed the second and final tranche of its previously announced non-brokered private placement pursuant to which it has issued an aggregate of 784,615 units ("Units") at a price of $0.065 per Unit to raise aggregate gross proceeds of approximately $51,000. Each Unit consists of one common share and one share purchase warrant of Newstrike, with each share purchase warrant entitling the holder thereof to acquire one additional common share of Newstrike for a period of 24 months at an exercise price of $0.10 per share. In total, Newstrike issued an aggregate of 5,134,615 Units pursuant to the offering to raise aggregate gross proceeds of approximately $333,750. Insiders of Newstrike subscribed for an aggregate of 1,500,000 Units in the offering.

All securities issued and issuable in connection with the first tranche of the offering are subject to a statutory hold period expiring on February 12, 2014, and all securities issued and issuable in connection with the second tranche of the offering are subject to a statutory hold period expiring on February 18, 2014. The private placement remains subject to the final approval of the TSX Venture Exchange.

Newstrike also wishes to announce that Mr. John Pollock, the President and a director of Newstrike, has relinquished his rights and entitlement to an aggregate of 575,000 stock options of Newstrike (the "Options"). An aggregate of 400,000 Options were exercisable to acquire common shares of Newstrike at $0.55 per share until November 27, 2014, and an aggregate of 175,000 Options were exercisable to acquire common shares of Newstrike at $0.15 per share until September 28, 2017. In addition, Newstrike also announces that 135,000 options to purchase common shares of the Company have been granted to a director at an exercise price of $0.10 per share, expiring on October 17, 2018. The grant is subject to regulatory approval.

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.

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, 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.

Contact Information

  • Newstrike Resources Ltd.
    Donald T. Rankin
    416.628.6556