for new eyes..this stock is the next runner..buy before drill results..Teck involved STRAIT ISSUES SHARES FOR WARRANT EXERCISE, PREPARES TO RESUME DRILLING AT ALICIA 2013-09-05 09:33 ET - News Release
Teck Resources Ltd. has exercised three million warrants to purchase three million common shares of Strait Minerals Inc. at 12 cents per share for net proceeds to Strait of $360,000. Teck now directly holds nine million common shares of Strait, representing approximately 14.9 per cent of the issued and outstanding common shares of the company.
"The early exercise of these warrants is a vote of confidence," said Strait president Jim Borland. "Teck has now invested $2.76-million -- $1.5-million on exploration work and $1.26-million on Strait shares -- before drilling to test the porphyry at our Alicia property has even begun. Drilling has been delayed almost a full year by a nationwide change in regulations regarding exploration in Peru," said Mr. Borland. "We have now received government approval for drilling."
A driller has been contracted to mobilize two rigs and conduct an initial 3,500-metre drill program that is expected to meet Teck Peru's mandatory work commitment of $2-million. An environmental impact assessment for up to 23,000 metres of drilling in 52 holes has been approved by Peru's mines ministry. Drilling is expected to be under way before the end of September.
"In this difficult market environment, we have also taken steps to improve liquidity," said Mr. Borland. "As a result of the warrant exercise, we now have $500,000 in working capital to be used for general corporate purposes while Teck Peru pays for all expenditures at Alicia." The company also receives a 100-per-cent administration fee from Teck Peru for managing the program.
Teck, through its wholly owned subsidiary Teck Peru SA, can earn up to a 75-per-cent interest in the company's 100-per-cent-owned Alicia property in Peru by, among other things, spending $30-million on exploration or by spending $10-million on exploration and delivering a prefeasibility study to the company.
To earn a 45-per-cent direct interest in the Alicia property, Teck must:
Spend $4-million ($2-million committed) on exploration ($1.5-million spent to date on mapping, sampling and geophysics);
Exercise the three million warrants (completed) (see press release dated Dec. 9, 2011, to view full agreement terms).
Strait Minerals Inc. is a Canadian mineral exploration company active solely in Peru since 2003 and listed on the TSX Venture Exchange. It holds a 100% interest in the Alicia copper-gold property which lies within the Andahuaylas-Yauri copper belt approximately 500 km southeast of Lima. Strait has granted Teck Peru S.A., a wholly owned subsidiary of Teck Resources Limited, an option to earn up to a 75% interest in the property by, among other things, spending $30 million on exploration or by spending $10 million on exploration and delivering a pre-feasibility study. The Company also holds an option to earn a 100% interest in the Caribe copper-molybdenum property approximately 80 km west of Alicia and holds a 100% interest in both the Letra Rumi South base metals property and the Culebrilla precious metals property approximately 250 km north of Lima. The Company continuously reviews exploration opportunities in Peru and is actively seeking additional projects. Please visit our web site at www.straitminerals.com.