During the fiscal period from May 1, 2008 to January 31, 2009, the company was successful in raising a total of $300,000 for exploration at the Edwards Mine area and the Nicholson property nearby. On December 30, 2008 Strike completed a non-brokered private placement for these funds with the Mineral Fields Group.
Strike ended the third quarter with a strong liquid balance of cash and marketable securities of $288,956 versus $322,062 at the end of third quarter in the prior year. See unaudited interim financial statements and MD&A published on March 30, 2009.
A realized gain of $224,430 was generated in fiscal 2009 from the sale of Cline Mining Corp shares acquired in a share swap in Dec 2006. The funds were used to eliminate the secured loan to a company controlled by a director ($111,535 balance interest and principal) and to purchase a $115,000 GIC to act as security for a Financial Assurance Bond supporting the Ministry of Northern Development and Mines remediation requirements of the Edwards Mine site. A party related to a director had previously held this bond. The party had been compensated $20,000 per year for the risk and cost associated with the bond.
Strike is currently in a strong financial position to go forward with the exploration of the Nicholson and Edwards properties. The company had paid all of its outstanding long-term debt at the end of the 2nd quarter of 2008.
Future Plans
Strike intends to carry out an active mining exploration and, if warranted, a development program at its Edwards Mine and Nicholson properties.
Initial grab samples of the Nicholson property assayed as high as 188.92 grams per tonne. (See press release Oct. 2, 2008). A second stage of exploration (channel samples) returned grades of 14.77 grams per tonne over 1.52 meters for 57.3 meters and 8.95 grams per tonne over 1.52 meters for 16.3 meters. A diamond drill program has commenced involving 18 holes for 810 meters at an all-in cost of $140,000 to test the potential zone on 15 meter sections at vertical depths of 15, 30 and 45 meters. The concentrated drilling is designed to determine the potential for surface extraction of the mineralization.
These projects will require substantial capital. It is intended to access the equity markets both by way of “hard dollars” and “flow through” share offerings to secure the required financing.
The Edwards Mine property has the makings of a company builder. However, with additional information, it may be advisable to consolidate this property with others in the camp, or along structure, or otherwise, so as to build a viable integrated property suitable for economic exploitation.
Acquisitions remain our focus for the coming financial year, and the Company will use equity for the right acquisition.
Corporate Governance
Wendy Kimmel, Chairman of the Board announced the addition of Michael S. Harrington and Frank C. Smeenk to the Board of Strike Minerals, replacing Gord Paget who resigned. This increased the board to a total of 6 members.
In 2007 Denis Crane, relinquished his role as the Chairman of the Board and became President and Chief Executive Officer, and Wendy Kimmel was appointed as the Chairman of the Board and a Non-Executive Director of the Company. This was an effort to be compliant with TSX guidelines.
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