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Mineral exploration in Peru
Message: Strait Gold to Increase Unit Private Placement
TORONTO, ONTARIO--(Marketwire - Dec. 3, 2010) - Strait Gold Corporation (TSX VENTURE:SRD) ("Strait Gold" or the "Company") is pleased to announce that it is increasing its non-brokered private placement announced on November 25, 2010.
Strait Gold will offer up to 13,000,000 units of the Company at a price of $0.135 per unit, for gross proceeds of up to $1,755,000 (the "Offering"). Each unit (a "Unit") will consist of one (1) common share of the Company and one (1) share purchase warrant (each a "Warrant"). Each Warrant will entitle the holder to acquire an additional common share at the price of $0.25 per share for twelve (12) months following Closing. The Company may pay finder's fees of up to 8% cash plus up to 8% Compensation Options for funds raised by eligible finders. Each Compensation Option entitles the finder to purchase one common share of the Company at a price of $0.135 for twelve (12) months from Closing. Insiders of the Company may subscribe for up to a total of 500,000 Units for proceeds of up to $67,500.
The insider private placements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ("MI61-101") by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to insiders does not exceed 25% of its market capitalization.
Proceeds from the offering will be used for working capital and to fund exploration of the Company's Alicia property. The financing may close in tranches.
This transaction is subject to approval from the TSX Venture Exchange.
About Strait Gold Corporation:
Strait Gold Corporation is a Canadian mineral exploration company active solely in Peru and listed on the TSX Venture Exchange. It has an option to earn a 100% interest in the Alicia copper-gold property in Cusco Department approximately 500 km southeast of Lima, the capital of Peru, and holds a 100% interest in both the Letra Rumi South copper-silver property and the Culebrilla gold-silver property, both in Ancash Department approximately 250 km north of Lima. To learn more about Strait Gold, please visit our website at >www.straitgold.com
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