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.