July 31, 2012 (Investorideas.com Mining stocks newswire) - eResearch Corp reports Strike Minerals Inc. (TSX-V: STK) has begun a two-week temporary suspension of the underground exploration at the Edwards mine property in the Goudreau-Lochalsh gold camp near Wawa, Ontario. This will allow time for the Company to finalize plans for the commencement of mining at the Edwards #1 vein.
The plans include:
(a) Completing a milling agreement;
(b) Finalizing a mining plan for Edwards #1; and
(c) Securing financing for the mining and the continued underground development of the Edwards Mine project.
Development mining has, to date, produced and placed on surface a total of 638 tonnes of material with an average grade of 12.8 g/t from the Edwards #1 vein, and 325 tonnes grading 10.9 g/t from the Edwards #5 vein.
Strike has also announced that it will be offering, on a best-efforts basis, a non-brokered private placement of up to $3 million in common share units and flow-through units, comprising the following:
A combination of up to 10,000,000 flow-through units at $0.10 per flow-through unit, and up to 23,529,412 common share units at $0.085 per common unit.
Each flow-through unit will consist of one flow-through share and one-half of one common share purchase warrant.
Each common unit will comprise one common share and one warrant. Each warrant entitles the holder to acquire one common share at $0.12 per share for a period of 12 months from the closing date.
The proceeds of the offering are to be used to fund the initial underground mining at the Edwards Mine project, which will focus on continuing the mining of the Edwards #1 and Edwards #5 veins.
Strike's surface exploration will be focused on the Schreiber property in Ontario (Hemlo West area).
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