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STRIKE RESOURCES LIMITED Capital/Financing Update 2006
65855_rns_2006-10-23_2ed940a5-4bf2-4454-82da-145397b4303e.pdf
Capital/Financing Update
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Tuesday, 24 October 2006
MARKET ANNOUNCEMENT
Completion of Placement and Share Purchase Plan
The Company is pleased to announce the completion of a $3 million share placement to institutional, professional and sophisticated investors.
The Company has determined to allow current shareholders the opportunity to also subscribe for shares at the same price ($1.30 per share) through a $5 million Share Purchase Plan (SPP).
The funds raised will ensure the timely advancement of exploration, evaluation and development of the Company's mineral projects. In particular, the raising will secure the Company's ability to accelerate its investment commitments in relation to the Apurimac and Cuzco Iron-Ore Projects in Peru (which is a total investment of US$6.5 million over 5 years; a minimum of US$1.4 million within the first 12 months).
Under the SPP, shareholders registered as at 7 November 2006 (the Record Date) will be eligible to apply for either $1,000, $3,000 or $5,000 of shares at an issue price of $1.30 per share.
The SPP issue price represents a 20% discount to the volume weighted average price (VWAP) of SRK in the one month, and a 26% discount to SRK's VWAP in the 5 day period, prior to the date of this announcement.
If the total value of SPP subscriptions exceed $5 million, the Company reserves the right to scaleback the applications or retain some or all of the over subscriptions.
Indicative SPP Timetable
| Notice to SRKO option-holders of the SPP | Wednesday, 25 October |
|---|---|
| Record Date under the SPP | Tuesday, 7 November |
| Despatch of SPP documentation including Entitlement Forms | Wednesday, 8 November |
| Opening Date of SPP | Thursday, 9 November |
| Closing Date of SPP | Thursday, 23 November |
| Allotment of SPP shares and despatch of holding statements | Monday, 27 November |
The Company will give notice of the SPP to its listed option holders to allow such holders to convert their options into shares by the Record Date, to participate under the SPP.
For further information: Shanker Madan Managing Director T | (08) 9214 9700 E | [email protected]
Victor Ho Company Secretary $T$ | (08) 9214 9700 E | [email protected]
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
ASX Code: SRK