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Strike Minerals Jumps 10%, New Year High; Secures Edwards Mine Project Financing with Waterton Global Value

Strike Minerals Inc. (STK.V) shares are up 10.71%, to 15.5 cents at midday, a new year high. Close to 2.7 million shares have changed hands.

The company announced yesterday that it has signed an agreement with Waterton Global Value, L.P. that will provide the Company with up to $3,500,000 of financing consisting of Gold Stream Debt Financing. The principal amount of the Gold Stream Debt Financing, being $3,500,000, will be secured by the assets of the Company, including the assets comprising the Edwards Mine Project. Repayment will occur by the last business day of March 2013, and ending on the last business day of February 2015. Each monthly repayment will be made by delivering to Waterton either gold bullion ounces or certain fixed cash amounts. If the Company makes any monthly payment by delivering gold bullion ounces to Waterton, the number of ounces so delivered shall be calculated based on a deemed gold price that is, effectively, equal to 80% of the then prevailing spot price of gold. Any outstanding principal amount of the Gold Stream Debt Financing shall accrue interest at a rate of 7.00% per annum.

A portion of the first advance of the Gold Stream Debt Financing will be used to repay the $350,000 Bridge Loan previously advanced to Strike by Waterton. In connection with the Gold Stream Debt Financing, Waterton will be provided with 14,000,000 warrants that are exercisable at a price of $0.10 for a period of 3 years.

The Company will use the proceeds of the Financing for the development and initial production from the Edwards Mine Project. Strike Minerals has separately entered into a mine gold and silver supply agreement with Waterton, whereby the Company will sell gold and silver produced at the Edwards Mine Project to Waterton based on certain agreed terms and conditions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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