Lucky Strike Arranges $900,000 Private Placement; Proceed to Acquire Changyun Coal Mine in China
Vancouver, Canada, October 26, 2010 --(PR.com)-- Lucky Strike Resources Ltd. (TSX.V-LKY), (the “Company”) is pleased to announce today it has cancelled the non-brokered private placement contemplated and described in the press release dated September 22, 2010, and replaced it with another proposed non-brokered private placement for a maximum gross proceeds of $900,000 through the sale of up to 6 million units (the "Units") of the company priced at 15 cents each. Each Unit consists of one common share of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional Common Share of the company at an exercise price of $0.20 per Common Share for a period of 2 years following the closing of the private placement.
The net proceeds will be used for continuation of the acquisition of the Changyun coal mine in Guizhou Province of China and for general working capital.
This private placement is subject to finder's fees, which will be paid in accordance with the TSX Venture Exchange policies, and is subject to the approval of the regulatory authorities.
It is not anticipated that any new insiders will be created, nor a change of control will occur as a result of the private placement. The private placement is subject to regulatory approvals, including final approval by the TSX Venture Exchange. All securities issued pursuant to the private placement are subject to a 4-month hold period. After taking into consideration this private placement, the Company will have 12,943,967 common shares issued and outstanding.
About the Changyun Coal Project
Located within the Bijie coal fields, Guizhou Province, the Changyun coal mine covers an area of 2.0954 sq. km with valid mining permits for a 150,000 MTPY coal mining operation, which may be expanded to 300,000 - 500,000 MTPY. Local historical reports (non-compliant with NI43-101) state that coal seams within the mine area are highly altered and would produce a low ash, low to medium sulphur (average 0.23%), and low-volatile (7-8% volatile matter) product, with high gross calorific value that ranges from 6400 to 7200 Kcal/kg. The thermal grade coal is suitable for power plant use. A ready market for production exists with the nearby power plants and other end users within Guizhou province.
In addition to the mine, Changyun has recently been provided with preferential rights to explore and develop a 20 sq. km of highly prospective exploration land surrounding the mine.
About Lucky Strike:
Lucky Strike Resources Ltd. is a Canada-based exploration stage company. The Company is engaged in the process of exploring and/or developing coal properties in Guizhou province in China. The Company also has property in Yreka, British Columbia, Canada. The Changyun coal project is a former past producing mine and is located some 25 km northeast of Bijie City in Guizhou province, approximately two hours north by air from Hong Kong. The permitted mine covers a total area of 2.0954 sq. km and is surrounded by approximately 20 sq. km of highly prospective exploration area, where available geological data supports the potential presence of significant coal resources of high quality Anthracite coal within the area. The local area has well established infrastructure for the Changyun project to resume production and coal buyers to pick up coal FOB at the mine site.
On behalf of Management
Lucky Strike Resources Ltd.
“Dodge Li”
Dodge Li, CEO & Director
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The net proceeds will be used for continuation of the acquisition of the Changyun coal mine in Guizhou Province of China and for general working capital.
This private placement is subject to finder's fees, which will be paid in accordance with the TSX Venture Exchange policies, and is subject to the approval of the regulatory authorities.
It is not anticipated that any new insiders will be created, nor a change of control will occur as a result of the private placement. The private placement is subject to regulatory approvals, including final approval by the TSX Venture Exchange. All securities issued pursuant to the private placement are subject to a 4-month hold period. After taking into consideration this private placement, the Company will have 12,943,967 common shares issued and outstanding.
About the Changyun Coal Project
Located within the Bijie coal fields, Guizhou Province, the Changyun coal mine covers an area of 2.0954 sq. km with valid mining permits for a 150,000 MTPY coal mining operation, which may be expanded to 300,000 - 500,000 MTPY. Local historical reports (non-compliant with NI43-101) state that coal seams within the mine area are highly altered and would produce a low ash, low to medium sulphur (average 0.23%), and low-volatile (7-8% volatile matter) product, with high gross calorific value that ranges from 6400 to 7200 Kcal/kg. The thermal grade coal is suitable for power plant use. A ready market for production exists with the nearby power plants and other end users within Guizhou province.
In addition to the mine, Changyun has recently been provided with preferential rights to explore and develop a 20 sq. km of highly prospective exploration land surrounding the mine.
About Lucky Strike:
Lucky Strike Resources Ltd. is a Canada-based exploration stage company. The Company is engaged in the process of exploring and/or developing coal properties in Guizhou province in China. The Company also has property in Yreka, British Columbia, Canada. The Changyun coal project is a former past producing mine and is located some 25 km northeast of Bijie City in Guizhou province, approximately two hours north by air from Hong Kong. The permitted mine covers a total area of 2.0954 sq. km and is surrounded by approximately 20 sq. km of highly prospective exploration area, where available geological data supports the potential presence of significant coal resources of high quality Anthracite coal within the area. The local area has well established infrastructure for the Changyun project to resume production and coal buyers to pick up coal FOB at the mine site.
On behalf of Management
Lucky Strike Resources Ltd.
“Dodge Li”
Dodge Li, CEO & Director
###
Contact
Lucky Strike Resources Ltd.
Charn Deol
604-681-8225
www.luckystrikeresources.com
Charn Deol
604-681-8225
www.luckystrikeresources.com
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