Toronto, ON / ACCESSWIRE – July 7, 2021 – Strike Copper Corp. (“SCC” or the “Company”) is pleased to announce that it has closed two strategic, non-brokered private placement financings (the “Financings”) with Crescat Capital LLC (“Crescat”). The first investment closed on or about June 14, 2021 at $.10 per share and the second closed on or about July 2, 2021 at $.20 per share. Altogether, Crescat has invested $300,000 representing a 12.3% ownership position (post-investment) in the Company. Crescat also has the option to participate in future financings to maintain their interest level in the Company for three (3) years from the date of closing.
Each private placement financing consisted of 1,000,000 Units (the “Units”) of the Company for gross proceeds of $300,000. Each Unit consists of one common share and one share purchase warrant (the “Warrant”). Each of the first placement Unit Warrants entitles Crescat to purchase one additional common share, up to a total of 1,000,000 at an exercise price of $.15 per share. Each of the second placement Unit Warrants entitles Crescat to purchase one additional common share, up to a total of 1,000,000 at an exercise price of $.25 per share. All warrants will expire three years from the date of issue and are subject to an acceleration clause. The net proceeds of the financing will be used to advance exploration on SCC’s Sungold property project in Northwestern Ontario and for general working capital.
Charles Elbourne, Director, President and CEO of SCC, stated, “We are excited to welcome Crescat Capital as a strategic investor. Being selected by Crescat as a significant investor in SCC validates management’s belief in the potential of the Company’s Sungold property and our shared confidence in the long-term upward direction of the copper market. Crescat is known as an active investor with a proven track record of financial and technical strength. We are confident that their assistance will help unlock the full potential of our property assets and in the process build value for all our shareholders. The Company is now well-positioned from a capital perspective to move forward with our 43-101 recommended Phase I exploration and drilling program.”
Kevin Smith, founder and CIO of Crescat Capital, remarked. “We are excited about the opportunity to help unlock substantial value at Strike Copper by providing capital for exploration at its Sungold project. The company has acquired a large property package – 5,800 hectares – with potential for a sizable and economic copper and gold system. We are eager to see the team focus its efforts on the IOCG mineralization at Hamlin Lake which is open to depth.”
Quinton Hennigh, Crescat’s Geologic and Technical Advisor, commented, “I am excited about the opportunity of working with SCC’s exploration team to develop its Phase I drill program at the Sungold property. Although right in the heart of a classic Abitibi greenstone belt, this project shows indications it is host to a somewhat unusual gold-copper system for this region, perhaps one of IOCG affinity. Historic drilling in an area immediately adjacent to the project yielded long intercepts of Au-Cu mineralization. Crescat is delighted to hold a significant stake in an early stage, exciting opportunity such as this.”
About Crescat Capital LLC
Crescat is a global macro asset management firm founded in 1994 by Kevin Smith, CFA, headquartered in Denver, Colorado. Crescat’s mission is to grow and protect wealth over the long term by deploying tactical investment themes based on proprietary value-driven equity and macro models. Crescat’s goal is industry-leading absolute and risk-adjusted returns over complete business cycles with low correlation to standard benchmarks. The Company’s investment process involves a mix of asset classes and strategies to assist with each client’s unique needs and objectives and includes Global Macro, Long/Short, Large Cap and Precious Metals funds. Crescat is advised by its technical consultant, Dr. Quinton Hennigh, on investments in gold and silver resource companies. Dr. Hennigh obtained his Ph.D. in Geology/Geochemistry from the Colorado School of Mines and has more than 30 years of exploration experience with major gold mining firms.