|By Marketwired .||
|May 22, 2014 07:58 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/22/14 -- Strike Graphite Corp. ("the Company" or "Strike") (TSX VENTURE:SRK) is pleased to announce that it has entered into an agreement to acquire an 80% undivided interest in approximately 1.25 million acres (505,000 hectares) of mineral claims located within east-central Saskatchewan (the "Sask Craton Property"). In addition, it has concurrently entered into a separate agreement to acquire 80% of a contiguous property (the "Sask Craton North Property") totaling approximately 92,450 acres (37,400 ha). The Sask Craton Property and the Sask Craton North Property comprise the largest mineral tenure position in the emerging diamond district established by the recent discovery of diamondiferous kimberlite within the Pikoo Property by North Arrow Minerals Inc. ("North Arrow") and Stornoway Diamond Corp ("Stornoway").
"This major land package located within the central parts of the Sask Craton provides the shareholders of Strike with an exceptional opportunity to explore for and discover kimberlites within what is considered an underexplored region, which is highly prospective for diamonds. By structuring deals without any minimum exploration requirements or upfront cash, Strike has provided itself with significant flexibility to advance these projects," stated Geoff Balderson, President & CEO of Strike.
A map of the Sask Craton Property and Sask Craton North Property may be viewed on the Company's website at:
About the Sask Craton Properties
The area is underlain at depth by the Sask Craton, which is interpreted to exceed 100,000 square kilometers and extends for 200 kilometers along strike; while it is transected by the regional Tabbenor Fault System. This long lived, regional feature extends for over 1500 km along an approximate north-south orientation. The Company believes this tectonic environment to be ideal for the emplacement of kimberlite, within an area underlain by a favorable basement terrane. Other notable kimberlite fields within the Sask Craton include those at Candle Lake and Fort a la Corne.
During 2013, North Arrow conducted a limited drill program to test two distinct kimberlite indicator mineral trains on their adjoining Pikoo Property. North Arrow's November 5, 2013 press release characterized the PK 150 kimberlite which returned 745 diamonds larger than 0.106 from 209.7 kg of drill core. The estimated grade for diamonds greater than 0.85 mm was 1.34 carats per tonne. Based on three holes, the kimberlite has approximate dimensions of 75 m along strike by 10 to 15 meters wide, and is open along strike and at depth.
Terms of the Sask Craton Property Agreement are as follows:
-- 1,000,000 common shares to one of the vendors; -- 1,000,000 share purchase warrants, each warrant exercisable into one common shares of the Company at an exercise price of $0.25 per share for a period of 3 years for the date of issue; -- Cash payments beginning November 1, 2014 and extending through February 1, 2016, totalling $553,028.30; -- The Vendors shall retain a 20% carried interest up to, but not including, mine construction, as well as a 3% gross royalty.
Terms of the North Sask Property Agreement are as follows:
-- 449,145 common shares to the vendors; -- The Vendors shall retain a 20% carried interest up to, but not including, mine construction, and a 3% gross royalty.
Both the Sask Craton Property and the Sask Craton North Property acquisitions are subject to acceptance of the TSX Venture Exchange.
Mineralization on the Pikoo Property is not necessarily indicative of mineralization on the Sask Craton and Sask Craton North properties.
Shares for Debt Settlements
Strike is very pleased to announce that it has entered into shares for debt settlement agreements to convert the majority of outstanding debt owed by the Company. Settlement agreements have been reached with holders representing approximately $562,115.42 of existing debt owed by the Company, which shall be converted into common shares at a deemed price of $0.05 per share, for a total share amount proposed to be issued of approximately 11,242,308 common shares.
"We are pleased to have reached share for debt agreements on the balance of our outstanding obligations. This proposed settlement will substantively improve our balance sheet and enable the Company to move forward while adding value for our shareholders," stated Geoff Balderson, President & CEO of Strike.
The debt settlement transaction is subject to the acceptance of the TSX Venture Exchange.
Darren Smith, P.Geo., is a Qualified Person pursuant to National Instrument 43-101, and has reviewed and approved the technical disclosure in this news release.
On behalf of the Board of Directors,
Geoff Balderson, President.
Certain information set out in this news release may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "Forward-Looking Statements"). All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are Forward-Looking Statements. Forward-Looking Statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. Forward-Looking Statements are based upon the opinions and expectations of the Company based on information currently available to the Company. Forward-Looking Statements are subject to a number of factors, risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the Forward-Looking Statements including, among other things, the Company has yet to generate a profit from its activities;
there can be no guarantee that the estimates of quantities or qualities of minerals disclosed in the Company's public record will be economically recoverable; uncertainties relating to the availability and costs of financing needed in the future; competition with other companies within the mining industry; the success of the Company is largely dependent upon the performance of its directors and officers and the Company's ability to attract and train key personnel; changes in world metal markets and equity markets beyond the Company's control; mineral reserves are, in the large part, estimates and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized; production rates and capital and other costs may vary significantly from estimates; unexpected geological conditions; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; all phases of a mining business present environmental and safety risks and hazards and are subject to environmental and safety regulation, and rehabilitation and restitution costs; the Company does not maintain insurance against environmental risks; and management of the Company have experience in mineral exploration but may lack all or some of the necessary technical training and experience to successfully develop and operate a mine. Although the Company believes that the expectations reflected in the Forward-Looking Statements, and the assumptions on which such Forward-Looking Statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on Forward-Looking Statements, as there can be no assurance that the plans, intentions or expectations upon which the Forward-Looking Statements are based will occur. Forward-Looking Statements herein are made as at the date hereof, and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these Forward-Looking Statements.
Neither 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.
We seek safe harbor.