Strikepoint Gold amends private placement

2009-12-01 08:31 ET - News Release

Mr. Richard Boulay reports

STRIKEPOINT GOLD INC. ANNOUNCES AMENDMENT OF PRIVATE PLACEMENT

Subject to regulatory approval, Strikepoint Gold Inc. has amended the brokered private placement with Dundee Securities Corporation and a syndicate of agents announced in Stockwatch Nov. 26, 2009.

The private placement is amended to include the sale of up to 5,225,500 flow-through common shares at a price of 47 cents per flow-through common share for gross proceeds of up to $2,455,985 and the sale of up to 12.34 million non-flow-through units at a price of 40 cents per unit for gross proceeds of up to $4,936,000, each unit consisting of one common share and one-half of one transferable common share purchase warrant. Each full warrant will be exercisable into one common share of the corporation at an exercise price of 60 cents for a period of 24 months from the closing date. The total gross proceeds to be raised in the offering are $7,391,985.

As consideration to the agents, the corporation will pay a commission of 6.0 per cent of the total proceeds raised upon closing and issue agents' warrants equal to 6.0 per cent of the units and flow-through common shares issued pursuant to this offering. Each agents' warrant will be exercisable to acquire one common share at 60 cents for a period of 24 months from the closing date. The shares issued under this financing will be subject to a four-month hold period from the date of closing of the offering.

The corporation intends to use the net proceeds for exploration of its mineral properties. Expenditures from the flow-through common shares will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced for the 2009 taxation year.