Lucky Strike Revises Terms and Increases Earn-In to 80% for Changyun Coal Mine in China
Lucky Strike Resources Ltd wishes to announce an amendment to the terms of the Letter of Intent (LOI) for the acquisition of the Changyun Coal Mine project with Cheung Wan (Groups) Energy Development Limited. The Company has been continuing its due diligence review of the project and has conducted another site visit of the project. The LOI with Cheung Wan has been altered to allow the Company to earn an additional 20% interest of the project bringing the total amount to 80%.
Vancouver, Canada, October 30, 2010 --(PR.com)-- Lucky Strike Resources Ltd. (TSX.V-LKY), (the “Company”) wishes to announce an amendment to the terms of the Letter of Intent (LOI) for the acquisition of the Changyun Coal Mine project with Cheung Wan (Groups) Energy Development Limited (“Cheung Wan”) first reported on August 10th, 2010.
The Company has been continuing its due diligence review of the project and has conducted another site visit of the project. The LOI with Cheung Wan has been altered to allow the Company to earn an additional 20% interest of the project bringing the total amount to 80% from the original 60%. The proposed purchase price increases from RMB 110 Million to RMB 150 Million, or to approximately US$22.06 Million to be paid in 2 tranches with the first tranche for US$5.1 Million due within 6 months of signing of the LOI, the second tranche for US$16.96 Million due within 1 year of completing the first tranche payment and upon on the project meeting certain milestones. Management has forwarded a US$150,000 fully refundable deposit to secure the Changyun coal mine project for the Company.
A finder’s fee for the project is payable to SinoCan Coal Limited, subject to the approval of the TSX Ventures Exchange. The finder’s fee shall be payable in Company shares according to the following schedule, 20% payable immediately, 40% payable at the signing of the final agreement between the Company, and Cheung Wan and the balance to be paid at final closing.
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 Company has been continuing its due diligence review of the project and has conducted another site visit of the project. The LOI with Cheung Wan has been altered to allow the Company to earn an additional 20% interest of the project bringing the total amount to 80% from the original 60%. The proposed purchase price increases from RMB 110 Million to RMB 150 Million, or to approximately US$22.06 Million to be paid in 2 tranches with the first tranche for US$5.1 Million due within 6 months of signing of the LOI, the second tranche for US$16.96 Million due within 1 year of completing the first tranche payment and upon on the project meeting certain milestones. Management has forwarded a US$150,000 fully refundable deposit to secure the Changyun coal mine project for the Company.
A finder’s fee for the project is payable to SinoCan Coal Limited, subject to the approval of the TSX Ventures Exchange. The finder’s fee shall be payable in Company shares according to the following schedule, 20% payable immediately, 40% payable at the signing of the final agreement between the Company, and Cheung Wan and the balance to be paid at final closing.
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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