Vancouver, B.C., July 22, 2010 – Newstrike Capital Inc. (TSX-V: NES) (“Newstrike” or “the Company”) – www.newstrikecapital.com reports that it has completed the first tranche of its previously announced non-brokered private placement. In the first tranche, Newstrike issued 9,145,000 units at a price of $0.40 per unit for cash proceeds of $3,658,000. Each unit is comprised of one common share and one-half of a share purchase warrant. Each whole warrant will entitle the holder to acquire a common share of the Company at $0.80 per common shares for a period of 18 months from the date of issue, or January 21, 2010. The second tranche comprising the remaining 3,335,000 units is expected to close on or before August 6, 2010.
A finders’ fee of approximately 7% was paid on the first tranche of the offering to Woodstone Capital Inc.
The shares will be restricted from trading until November 22, 2010, in compliance with TSX Venture Exchange policies and securities legislation.
The proceeds will be used to fund near-term exploration activities on the Company’s Aurea Norte project in the State of Guerrero and for general working capital purposes.
About Newstrike (TSX-V: NES)
Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Current management and directors co-discovered Goldcorp’s and Teck’s significant discoveries in Guerrero Gold Belt in Guerrero State, currently in advanced stages of exploration and production.
Newstrike holds a 100% interest in certain exploration properties in Mexico located within two established mining districts; the gold bearing oxidized iron skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic Ag-Au-Cu rich epithermal camp of the mining districts of Oaxaca State.
Aura Silver Resources Inc. has announced further encouraging results from its ongoing silver and gold exploration at its Higo Blanco project
Located in the Taviche district, Oaxaca, Mexico, the Higo Blanco project is adjacent Newstrike Capital’s Ejutla Fracc. II claim
Additional results from holes HBET-26 and HBET-27 indicate that the gold zone first discovered in the Mezcal Vein structure in HBET-01 (0.68 grams per tonne (g/t) gold equivalent from surface to 38.75 meters; located 150 meters northwest) continues deeper, with grades increasing at depth.
Hole HBET-26 returned grades of 0.64 g/t gold equivalent over 22 meters at a depth of 118.6 meters while HBET-27 which was drilled underneath HBET-26 returned 0.93 g/t gold equivalent over 23.15 meters at a depth of 246.6meters.
Source: Aura Silver
Based upon the rapid rise in gold prices, Farallon Mining said it is planning a second mine at its Campo Morado property in Guerrero Sate in Mexico
The Company is formally initiating studies to re-evaluate the Reforma, Naranjo, El Largo and El Rey deposits to assess the feasibility of building a second mine with a target start date of July 1, 2013.
Indicated resources for the Reforma, El Rey, Naranjo and El Largo deposits total 11.2 million tonnes of 4.7% zinc, 0.7% copper, 1.4% lead, 165 grams per tonne of silver and 2.7 grams per tonne of gold.. Contained gold totals 960,000 ounces and contained silver totals 60 million ounces.
The Company already operates a zinc mine, G-9 zinc mine at Campo Morado. The second mine would piggy back on infrastructure already in place at the current G-9 mine operation.
Located in the northern Guerrero Gold Belt to the west of and adjacent to Newstrike Capital Inc.’s Aurea Norte Project in Guerrero State, Mexico, the G-9 mine is a 1,500 tonnes per day, underground, zinc mine with important by-product credits of copper, gold, silver, and lead.
Source: Farallon Resources
With the acquisition of the Ana Paula Properties, Newstrike Capital now controls a 100 per cent interest in over 160,000 strategic hectares in the Guerrero Gold Belt (GGB).
The company manages their land position under two contiguous projects – Aurea Sur and Aurea Norte – which are divided geographically by the east-westerly trending Balsas River.
The Aurea Sur Project is located in the southwest of the GGB in an area rich in gold history. Geological fieldwork in the four Newstrike owned properties – Durazno, Ottawa, Vinatas & Consorcio – began in 2004 and is situated on a geological setting similar to the areas directly to the east of the Sur properties that have yielded major gold deposits. The gold inventory in southern deposits now exceeds 12 million ounces, with Newstrike Capital’s management team being instrumental in the discovery of eight million of those ounces.
The Aurea Norte Project covers the northwest extension of the GGB and contains project developments in areas like El Coyote, Cosmos, Don Jesus. The Ana Paula Properties have already yielded significant positive research by previous its previous owners, Goldcorp Inc. who – prior to Newstrike Capital’s acquisition – were conducting drill testing in the area. Though the Aurea Norte Project is largely untested compared to the Aurea Sur Project, exploration has confirmed a similar geological setting to those of the Bermejal, Nukay, and Filos deposits – the pioneer discoveries of the GGB.
For a better understanding of these geological similarities, read Understanding The Geological Setting of the Ana Paula Properties.
Vancouver, B.C., June 25, 2010 – Newstrike Capital Inc. (TSX-V: NES) (“Newstrike” or “the Company”) – www.newstrikecapital.com – is pleased to advise that it has completed its acquisition of a 100% interest in the Ana Paula mining concessions from Goldcorp Inc. (“Goldcorp”) (TSX:G, NYSE:GG). Final documentation was signed and submitted for registration in Mexico City on June 24, 2010. As consideration for the Ana Paula Properties, Newstrike paid to Desarrollos Mineros San Luis, S.A. de C.V. (“DMSL”), a wholly-owned subsidiary of Goldcorp, the amount of CAD$1.5 million in cash and 1,412,762 common shares of Newstrike having an aggregate value of CAD$600,000 calculated at a deemed price of $0.4247, being the volume weighted average trading price of common shares of Newstrike on the TSX Venture Exchange for the 20 consecutive trading days ending on the trading date prior to the issue date.
The Ana Paula properties comprise a total of 7,622 hectares in four discreet claims located internal to Newstrike’s existing land position and complementing the Company’s 81,000 hectares of highly prospective mineral claims in the immediate area. The Ana Paula properties include the advanced exploration stage Ana Paula Project where Goldcorp has previously identified anomalous gold at surface over a 1.0 by 2.0 kilometre area and in a similar geological setting to other deposits of the Guerrero Gold Belt.
A portion of this mineralized area was drill tested in 2005 with a 3,689 meter, 11-hole diamond drill program that confirmed the gold mineralization potential of the area. Newstrike has commissioned a technical audit and report of Goldcorp’s exploration results from Mr. Bob Lunceford, MSc, CPG, and independent qualified person under NI43-101. The Company’s report will be filed with the TSX Venture Exchange shortly.
About Newstrike (TSX-V: NES)
Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Current management and directors co-discovered Goldcorp’s and Teck’s significant discoveries in the Guerrero Gold Belt in Guerrero State, currently in advanced stages of exploration and production.
Newstrike holds a 100% interest in certain exploration properties in Mexico located within two established mining districts; the gold bearing oxidized iron skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic Ag-Au-Cu rich epithermal camp of the mining districts of Oaxaca State, and is increasing its position as strategic opportunities present themselves.
Vancouver, B.C., June 22, 2010 – Newstrike Capital Inc. (TSX-V: NES) (“Newstrike” or “the Company”) – http://www.newstrikecapital.com/ – is pleased to announce a non-brokered private placement of up to 12,500,000 units at a price of $0.40 per unit for cash proceeds of up to $5,000,000. Each unit is comprised of 1 common share and 0.5 of a share purchase warrant. Each whole warrant will entitle the holder to acquire a common share of the Company at $0.80 per common share for a period of 18 months from the date of issue. A 7% finders’ fee may be payable on all or a portion of the offering.
The proceeds will be used to fund near-term exploration activities on the Company’s Aurea Norte project in the State of Guerrero and for general working capital purposes. This private placement is subject to regulatory approval, and the common shares, together with the shares issued on the exercise of the warrants, will be restricted from trading for a period of four months from the date of issuance of the units, in compliance with TSX Venture Exchange policies and securities legislation.
Ana Paula Acquisition
The Company is pleased to advise that its acquisition of a 100% interest in the Ana Paula mining concessions from Goldcorp Inc. (TSX:G, NYSE:GG) is nearing completion. The acquisition, initially announced March 3, 2010, received regulatory approval on April 28, 2010 and a definitive agreement was entered into on May 11, 2010. Final documentation could be signed and registered as early as June 23, 2010. The 4 concessions that make up the Ana Paula properties, which comprise 7,662 hectares, are all internal to Newstrike’s existing land position and complement the Company’s 81,000 hectares of highly prospective mineral claims in the immediate area.
About Newstrike (TSX-V: NES)
Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Current management and directors co-discovered Goldcorp’s and Teck’s significant discoveries in the Guerrero Gold Belt in Guerrero State, currently in advanced stages of exploration and production.
Aura Silver Resources Inc. has announced results from its ongoing silver and gold exploration at its Higo Blanco project located in the Taviche district, Oaxaca, Mexico. The Higo Blanco project is adjacent Newstrike Capital’s Ejutla Fracc. II claim
New results include hole HBET-23 with 238.7 grams per tonne (g/t) silver equivalent over 19.3 meters which extends the overall length established for the Higo Blanco silver trend by about 50 meters. A newly discovered gold zone in Hole HBET-24 includes 2.05 g/t gold (Au) over 8.35 meters (including 4.9 g/t over 2.25 meters). Drilling to date comprises 27 holes in total (assays are pending for holes HBET-25, -26 and -27)
Source: Aura Silver
Goldcorp Inc. recently announced that it had entered agreement to sell the San Dimas gold-silver mine in Mexico to Mala Noche Resources Corp.
The total purchase consideration of $500 million, consisted of $275 million in cash, $175 million of Mala Noche common shares valued at the offering price of Mala Noche’s proposed equity financing and a $50 million promissory note payable over five years which will bear interest at a rate of 6% per annum. Goldcorp’s ownership interest in Mala Noche is expected to be approximately 30%.
This transaction follows on the heels of Goldcorp’s sale of the Escobal silver deposit in Guatemala to Tahoe Resources Inc., and the sale of its minority interest in Morelos Project to Torex Gold Resources (formerly Gleichen Resources Ltd.).
These transactions are consistent with Goldcorp’s ongoing strategy of creating value for shareholders by divesting smaller or noncore assets to focus on cornerstone operations that will continue to drive Goldcorp’s industry leading production growth and future cash flow
Recently Goldcorp and Newstrike Capital Inc. entered into a definitive agreement for Newstrike to acquire 100% of the “Ana Paula Project” from, a wholly-owned subsidiary of Goldcorp.
Ana Paula is an advanced exploration stage gold project, located in the north-central part of the State of Guerrero in southern Mexico. The Ana Paula Project consists of two contiguous and two discrete concessions covering 7,622 hectares that collectively comprise internal claims to Newstrike’s existing land position. Newstrike’s entire land position in the Guerrero Gold Belt (“GGB”) now covers just over 88,952 contiguous hectares.
As with the Mala Noche/San Dimas transaction, consideration for the Ana Paula transaction includes Goldcorp receiving shares of Newstrike.
In December 2009, Newstrike and Goldcorp announced they has entered into an agreement for Newstrike to acquire Goldcorp’s 21.2% position in the Morelos Project subject to a right of first refusal held by Gleichen Resources Ltd.; which Gleichen subsequently exercised.
Canadian-based mining company Goldcorp is playing well south of the U.S. border.
Why else would Mexican President Felipe Calderon attend Goldcorp’s (GG) recent opening ceremony for a new mine in Penasquito?
The president lauded Goldcorp for its $1.7 billion investment and for creating thousands of jobs. Once fully operational, the mine in the north-central region will be Mexico’s largest. What’s good for Mexico is good for Goldcorp.
The Penasquito mine is expected to produce about 1 million gold equivalent ounces per year for Goldcorp. Commercial production is set to start in the third quarter and fully ramp up by early 2011 to 130,000 tons per day.
While gold prices hover near a record-high $1,200 an ounce, some gold analysts predict prices will go even higher. They reason that investors will continue to turn to gold as a hedge against the falling euro and other global economic woes.
Biggest Mine
Penasquito’s production would put the mine on par with Goldcorp’s biggest gold mining asset, known as Red Lake, which is in northwestern Ontario. And that’s taking into account Red Lake’s expansion over the next couple of years. “It’s of huge importance to Mexico and the company,” said Scotia Capital analyst David Christie.
By market capitalization, Goldcorp is the second largest mining company in North America after Barrick Gold (ABX). Productionwise, it’s third after Barrick and Newmont Mining (NEM), both also based in Canada, a country with a long history of gold mining.
Goldcorp tends to trade at a premium to its large-cap peers due to its growth profile, analysts say. It expects to produce 2.6 million ounces of gold this year at a cost of $350 an ounce, up from 2.4 million ounces in 2009 at a cost of $295 an ounce. Its five-year forecast calls for a 50% increase due in large part to new production at Penasquito, where costs are viewed as relatively low.
Other new projects are lined up, too, such as Pueblo Viejo in the Dominican Republic, which is expected to start gold production in 2011. Management says the Dominican mine will produce more than 400,000 ounces of gold a year in the first five years.
“Goldcorp has excellent assets, and they’re very long-lived assets,” said analyst Adam Graf of Dahlman Rose & Co. “They are high margin and leveraged to the underlying commodity, which is gold.” The higher the price of gold, the better for gold producers, especially if production costs remain relatively low.
Newstrike Capital Inc. has entered into a definitive agreement to acquire 100% of the “Ana Paula Project” from a wholly-owned subsidiary company of Goldcorp.
Ana Paula is an advanced exploration stage gold project, located in the north-central part of the State of Guerrero in southern Mexico. The Ana Paula Project consists of two contiguous and two discrete concessions covering 7,622 hectares that collectively comprise internal claims to Newstrike’s existing land position. Newstrike’s entire land position in the Guerrero Gold Belt now covers just over 88,952 contiguous hectares.
Source: INVESTOR’S BUSINESS DAILY
Newstrike Capital Inc. (TSX VENTURE:NES) (“Newstrike” or the “Company”) – www.newstrikecapital.com – is pleased to announce it has entered into a definitive agreement dated May 11, 2010 to acquire 100% of the “Ana Paula Project” from Desarrollos Mineros San Luis, S.A. de C.V. (“DMSL”), a wholly-owned subsidiary company of Goldcorp Inc. (TSX:G, NYSE:GG).
Ana Paula is an advanced exploration stage gold project, located in the north-central part of the State of Guerrero in southern Mexico. The Ana Paula Project consists of two contiguous and two discrete concessions covering 7,622 hectares that collectively comprise internal claims to Newstrike’s existing land position. Newstrike’s entire land position in the Guerrero Gold Belt (“GGB”) now covers just over 88,952 contiguous hectares.
Beginning in 2004, Goldcorp conducted exploration programs on Ana Paula including geophysics, mapping and geochemistry, resulting in the discovery of a 1.0 kilometre by 2.0 kilometre wide area of gold mineralization at surface. A portion of this large mineralized area was drill tested in 2005 with a 3,689 meter, 11-hole diamond drill program that has confirmed the gold mineralization potential of the area.
Richard Whittall, President & CEO of Newstrike, commented: “Newstrike is pleased and excited by the acquisition of the Ana Paula Project, an advanced exploration project that we look forward to developing through aggressive exploration and drilling. Our management team has a long history formulating and developing the original GGB concept. Today, it is gratifying to see published NI43-101 compliant inventories of over 15 million ounces of gold in all categories, including from Goldcorp’s Los Filos gold mine and the El Limon deposit currently under development by Torex Gold Resources Inc. The GGB is now a firmly established gold camp where new discoveries are being actively pursued by Newstrike, Goldcorp, Torex and La Camera Mining Inc. Newstrike continues to hold a dominant strategic land position within the GGB that we will continue to advance towards discovery.”
As consideration for the acquisition of the Ana Paula Project, Newstrike will pay to DMSL $1.5 million in cash and a number of common shares in Newstrike having a value of $600,000, such shares to be issued at a price that is based on the higher of the volume weighted average trading price of the shares of Newstrike on the TSX Venture Exchange for the 20 consecutive trading days ending on the trading date prior closing or the closing price of Newstrike’s common shares on the date the transaction was approved. The TSX Venture Exchange approved the transaction on April 28, 2010 and closing of the transaction is expected on or before June 30, 2010.
About Newstrike (TSX VENTURE:NES)
Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Current management and directors co-discovered Goldcorp’s and Teck’s significant discoveries in Guerrero Gold Belt in Guerrero State, currently in production, development and advanced stages of exploration.
Newstrike holds a 100% interest in certain exploration properties in Mexico located within two established mining districts; the gold bearing oxidized iron skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic Ag-Au-Cu rich epithermal camp of the mining districts of Oaxaca State.
SOURCE:
Marketwire: “Newstrike Signs Definitive Agreement to Acquire Ana Paula Project from Goldcorp”
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