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STRIKE RESOURCES LIMITED Capital/Financing Update 2013
65855_rns_2013-12-10_43e5de58-e39f-494c-ba62-de802303d679.pdf
Capital/Financing Update
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STRIKE MOVES TO ENFORCE CERRO CCOPANE PROJECT SECURITY
Strike Resources Limited (ASX: SRK, "Strike" or "the Company") announces that the Company has issued a demand notice to Canadian listed Cuervo Resources Inc ("Cuervo"), in respect of the Investment Agreement between the two Companies, relating to the financing of the Cerro Ccopane iron ore project in Peru. The demand notice was for C$5,250,000 plus applicable interest.
The demand notice has been issued following Strike's concerns regarding the solvency of Cuervo and events of default occurring under the current agreements between the Companies. Strike also issued a notice of its intention to enforce its security held over 90% of the shares of the Peruvian company holding the key assets of the Cerro Ccopane project, if the full amount owed to Strike is not paid by 5pm Toronto time on December 16th 2013 (6 am on December 17th, Perth time).
Strike has advanced Cuervo C$5.25M to fund the Stage 1 drilling and exploration program and, in return, was issued warrants that can be converted to 31.5% of Cuervo's shares on an undiluted basis, at C$0.30 per share. Strike holds a share pledge (similar to a share mortgage) over 90% of the shares in Cuervo's 100%-owned Peruvian subsidiary that, in turn, owns Cuervo's concessions.
The Cerro Ccopane project holds 395.6 million tonnes of iron at an average grade of 43.8%, across the JORC inferred, indicated and measured categories. Significant further potential remains at Cerro Ccopane based on current drilling and other exploration data, with an Exploration Target of an additional 160 Mt to 220 Mt at a grade of 35% to 40% Fe identified for the Bob1 prospect. The potential tonnage and grade of the Exploration Target are conceptual in nature and it is uncertain whether further exploration will result in the estimation of a Mineral Resource.
-ENDS-
For further information, please contact:
Peru: William Johnson Managing Director Strike Resources Tel: +(511) 715-8090 [email protected]
Australia:
Shane Murphy – Media & Investor Relations FTI Consulting +61 8 9485 8888 +61 420 945 291 [email protected]
Registered Office: Level 11, London House, 216 St Georges Terrace, Perth, Western Australia 6000 web: www.strikeresources.com.au email: [email protected]
Cerro Ccopane Resources
| Bob1 NewResources | Tonnes (Mt) | Iron (%) | SiO2 (%) | Al2O3 (%) | P (%) | S% |
|---|---|---|---|---|---|---|
| Inferred | 217.0 | 40.2 | 21.6 | 5.0 | 0.08 | 2.2 |
| Cerro CcopaneNew Total1 | Tonnes (Mt) | Iron (%) |
|---|---|---|
| Inferred | 340.0 | 43.3 |
| Indicated | 35.9 | 45.9 |
| Measured | 19.7 | 48.3 |
| Total | 395.6 | 43.8 |
The information in respect to mineral resources, exploration targets and other exploration results at Cerro Ccopane is extracted from the report entitled "Cerro Ccopane Resource and Funding Update" released by Strike to the ASX on 30 July 2013 and available at www.strikeresources.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. All material assumptions and technical parameters underpinning the resource estimates in the original market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Peron's findings are presented have not been materially modified from the original market announcement.
1 Although a full suite of elementary analyses were completed on all drilling at Cerro Ccopane the resources apart from Bob1 (Golder) were not estimated for SiO2, Al2O3, or P and S grade estimates were completed only for Orcopura and Bob1 (Golder) resources.
About Strike Resources
Strike Resources is an ASX listed iron ore project developer, focused on the high grade Apurimac magnetite project in Peru.
Apurimac is 100% owned by Strike and has the potential to support the establishment of a significant iron ore operation, based on some of the highest magnetite grades in the world.
In the near term, Strike intends to expand the resource base at Apurimac significantly.
Alongside Apurimac, Strike holds the Cusco Iron Ore Project, and an interest in the Cerro Ccopane project, both of which are also magnetite projects in Peru.
Strike is well funded to meet its objectives, with significant cash in hand to progress the Apurimac project.