November 23, 2012 (Investorideas.com Mining stocks newswire) - eResearch Corp Reports: reports Strike Minerals Inc. intends to raise up to $12 million from a non-brokered private placement of units, with each unit comprising $1,000 principal amount of secured non-convertible debentures and 1,000 common share purchase warrants.
The debentures, with an interest rate of 12% per annum (payable quarterly), will run for a term of three years, and will be secured against the assets of the Company's Edwards mine properties in the Goudreau-Lochalsh gold camp near Wawa, Ontario.
The one-year warrants have an exercise price of $0.10 per share.
The proceeds of the offering are to be used to retire the Company's current debt facility with Waterton Global Value L.P. The total facility is $3.5 million. To date, Strike Minerals has drawn $2.3 million.
The completion of the private placement is subject to Strike Minerals coming to mutually agreeable terms with Waterton to buy out the credit facility, as well as receiving TSX-V approval.
THE COMPANY
Strike Minerals Inc. is an early-stage mining company with the flagship, formerly-producing, Edwards gold mine being readied to resume production.
The Edwards gold mine is located in the Goudreau Lake Deformation Zone in Ontario, an area that hosts a number of known gold deposits. The mine was in production from 1996 until 2001, with the previous operator producing 144,000 oz of gold at an average grade of 0.39 oz/t.
Commencement of mining at the Edwards #1 vein is subject to the following:
Completion of a milling agreement;
Finalization of the mining plan; and
Securing financing for the mining and continued underground development of the Edwards mine project.
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