Vancouver, B.C., January 25, 2010 – Newstrike Capital Inc. (NEX: NES.H) (“Newstrike” or “the Company”) – www.newstrikecapital.com – reports that it has completed a non-brokered private placement of 5,000,000 units at a price of $0.40 per unit for cash proceeds of $2,000,000. Each unit is comprised of 0.3 of a common share and 0.7 of a subscription receipt, with each whole subscription receipt exercisable to acquire, for no additional consideration, one common share. $1,400,000 of the $2,000,000 private placement is allocated to subscription receipts, and, subject to receipt of final approval from the TSX Venture Exchange, will be placed into escrow pending conclusion of the Company’s reactivation from the NEX to Tier 2 on the TSX Venture Exchange.
A 5% finders’ fee is payable on a portion of the offering. The shares will be restricted from trading for a period of four months from the date of issuance in compliance with TSX Venture Exchange policies and securities legislation.
Newstrike also confirms that Gleichen Resources Inc. has announced that it has decided to exercise its right of first refusal in respect of the acquisition of Goldcorp Inc.’s 21.2% interest in the concessions that comprise the Morelos Project in the Guerrero Gold Belt in Mexico. Newstrike had previously entered into a Share Purchase Agreement with Goldcorp in respect of its interest in the Morelos Project, which Agreement was subject to Gleichen’s decision to exercise its right of first refusal. Newstrike has determined that it will continue to move forward to meet its obligations under the Agreement with Goldcorp until such time as Goldcorp and Gleichen have entered into a formal agreement and the acquisition of Goldcorp’s interest by Gleichen has completed.