Strike Minerals Inc.

Strike Minerals Inc.

October 19, 2010 16:44 ET

Strike Minerals Inc. Announces Private Placement of up to $400,000

TORONTO, ONTARIO--(Marketwire - Oct. 19, 2010) - Strike Minerals Inc. (TSX VENTURE:STK) ("Strike" or the "Company"), which previously engaged Foundation Markets Inc. ("Foundation") as financing agent and mergers and acquisitions advisor (see press release dated June 21, 2010), is pleased to announce that it intends to complete an offering ("Offering") of up to 8 million units ("Units") at a price of $0.05 per Unit for aggregate gross proceeds of up to $400,000. 

Each Unit consists of one (1) common share of the Company and one half (1/2) of one share purchase warrant of the Company (a "Warrant"), with each full Warrant entitling the holder to acquire one common share of the Company at a price of $0.10 per common share for a period of 24 months from the closing date. The term of the Warrants is subject to an acceleration right at the option of the Company, provided that the common shares of the Company trade at or above $0.20 for a full 20 consecutive trading days and the Company has provided Warrant holders with 30 days prior written notice of the accelerated Warrant exercise date.

The Offering will be brokered by Foundation, who will be entitled to a cash commission in the amount of 8.5% of the gross proceeds received from the sale of the Units, and broker warrants ("Broker Warrant") equal to 8.5% of the Units issued pursuant to the Offering. Each Broker Warrant will be exercisable for a period of two years from the closing for one Unit at a price of $0.05 per Unit, subject to acceleration if the Company's commons shares trade at $0.125 or above for 30 consecutive trading days. 

The proceeds of the Offering will be used for exploration on the Company's Edwards Mine property and general corporate purposes.

About Strike

Strike Minerals is a TSX-V listed company that is engaged in the exploration and development of precious metal properties in Canada. Its primary property is the former producing Edwards Gold Mine property in the Goudreau – Lochalsh Gold Camp near Wawa Ont. Historic production in the camp between 1930 and 2001 is estimated at 500,000 ounces. Between 1996 and 2001 underground development was completed through a decline to a depth of approximately 290 m resulting in 145,000 oz being mined from the Edwards property. More recent exploration of the property has delineated an additional number of mineralized zones that require follow-up.

About Foundation

Foundation is a Toronto-based boutique investment bank and corporate finance advisory firm licensed as an Exempt Market Dealer. The firm is focused on working with small and medium-sized companies with rapid growth potential, specializing in assisting pre-public clients in accelerating access to private capital and executing going-public transactions. Foundation also works with public companies on financing, mergers and acquisitions transactions, and strategic advisory services.

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 Strike., including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing and exploration risk. There is no assurance that the company's exploration projects will add to Strike's resource base in the short-term, or at all. 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.

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