SRK - creation of two new control persons STRIKE GRAPHITE CORP. ANNOUNCES $1M NON-BROKERED PRIVATE PLACEMENT OFFERING AND RECEIPT OF CONDITIONAL ACCEPTANCE FOR PROPERTY ACQUISITIONS AND FILING OF THE DEBT SETTLEMENT
Strike Graphite Corp. has received conditional acceptance from the TSX Venture Exchange for its proposed acquisition of the Sask Craton property and the Sask Craton North property and it has made filings with the exchange for its proposed debt settlement. The property acquisitions and debt settlement were detailed by way of news release issued by the company on May 22, 2014. The property acquisitions remain subject to certain conditions to be satisfied by the company prior to final acceptance by the exchange.
The company intends to conduct a non-brokered private placement offering of up to 20 million units at a price of five cents per unit for gross proceeds of up to $1-million. Each unit will consist of one common share of the company and one-half of one common share purchase warrant, with each full warrant entitling the holder thereof to purchase one additional common share at a price of 10 cents per common share for a period of 24 months from closing of the offering. In connection with the offering, Strike Graphite may pay up to a 7-per-cent finder's fee on the gross proceeds of the offering. The offering is expected to close in tandem with the property acquisitions. Proceeds of the offering will be used to finance the acquisition and exploration of the property acquisitions, the completion of an NI 43-101 technical report, and for general working capital purposes.
The units and underlying securities of the offering will be subject to a four-month-and-one-day hold period from the date of issuance in accordance with applicable securities laws. The offering is subject to certain conditions including the approval of the exchange.
In connection with the debt settlement, the company further reports that it intends to seek shareholder approval for the creation of two new control persons (as that term is defined by the exchange), being Ryan Kalt and DG Resource Management Ltd., at its next shareholder meeting.