Newstrike Capital Inc. (“Newstrike” or the “Company”) – is pleased to announce it has entered into an agreement dated February 11th, 2010 to acquire a 100% interest in certain mining concessions situated in Guerrero State, Mexico, referred to as the “Ana Paula Properties” from Desarrollos Mineros San Luis, S.A. de C.V. (“DMSL”), a wholly-owned subsidiary company of Goldcorp Inc. (TSX:G, NYSE:GG).
As consideration for the Ana Paula Properties, Newstrike will pay to DMSL the amount of CAD$1.5 million in cash and a number of common shares in Newstrike that is equal to CAD$600,000, such shares to be issued at a price that is based on 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 to the issue date.
Located within the Guerrero Gold Belt, the Ana Paula Properties consist of four claims that in total aggregate 7,622 hectares (ha). The most advanced of these claims has been subject to 3,689 metres of drilling by Goldcorp.
Richard Whittall, President & CEO of Newstrike, commented: “We are pleased to extend our strategic footprint within the Guerrero Gold Belt. The acquisition of Ana Paula certainly complements our 81,000 hectares of highly prospective mineral claims in the immediate area. Our management team is very familiar with Ana Paula’s geological setting and we look forward to advancing the work conducted by Goldcorp to date.”
Closing of the transaction is expected in April 2010 and is subject to receipt of all required shareholder, regulatory and third party consents, satisfaction of customary closing conditions