Strachan Resources Ltd.

March 14, 2013 14:27 ET

Strachan Resources Announces Proposed Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 14, 2013) - Strachan Resources Ltd. (TSX VENTURE:SCN.P) ("Strachan" or the "Company"), a capital pool company, is pleased to announce that it has entered into an engagement letter with Canaccord Genuity Corp. (the "Agent") with respect to the financing to be completed for its Qualifying Transaction of the option of the 100% interest in the Chu Chua Property, which consists of 53 mineral claims covering a total area of 11,431, located in the Kamloops Mining Division, BC.

Under the terms of the engagement letter, the Agent has been appointed to act as Strachan's agent to raise, on a "commercially reasonable efforts" basis, by way of a Short Form Offering Document, 3,325,000 non flow-through units of Strachan (the "NFT Units") at $0.09 per NFT Unit and 2,000,000 flow-through units of the Company (the "FT Units") at a price of $0.10 per FT Unit for gross proceeds of $499,250 (the "Offering"). Each NFT Unit shall consist of one common share of Strachan ("Common Share") and one whole transferable common share purchase warrant (a "Warrant"), and each Warrant shall be exercisable into one Common Share for a period of two years at an exercise price of $0.15 per common share. Each FT Unit shall consist of one common share of Strachan, to be issued on a "flow-through" basis, and one Warrant.

Strachan has now obtained conditional approval from the TSX Venture Exchange (the "Exchange") for the Qualifying Transaction and will file its Filing Statement and the 43-101 Technical Report on the Chu Chua Property shortly.The Short Form Offering Document for the Offering has been drafted and submitted to the Exchange for approval and Strachan has requested an extension from the Exchange to complete the Qualifying Transaction in April.

Strachan intends to use the net proceeds from the Offering to complete the Qualifying Transaction, to carry out the recommended Phase 1 exploration program on the Chu Chua Property, and for general working capital purposes.

Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as terms and completion of the proposed transaction. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.



Steve Mathiesen, President

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. Neither 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

  • Strachan Resources Ltd.
    Steve Mathiesen
    (604) 696-6677