Strait Minerals (SRD-V) partner Teck Resources (TCK-T) to start Alicia drilling
www.straitminerals.com
SRD Company presentation straitminerals.com
Sept 5, 2013 - 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 nation-wide 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 10% administration fee from Teck Peru for managing the program.
Teck, through its wholly owned subsidiary Teck Peru S.A. ("Teck Peru"), can earn up to a 75% interest in the Company's 100% owned Alicia property in Peru by, among other things, spending $30 million on exploration or by spending $10 million on exploration and delivering a pre-feasibility study to the Company.
To earn a 45% 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);
- and -- exercise the 3,000,000 warrants (completed). (See press release dated December 9, 2011 to view full agreement terms.)
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