VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 25, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Newstrike Capital Inc. (TSX VENTURE:NES) ("Newstrike" or the "Company") is pleased to announce that it has retained the services of Mammoth Market Advisory Corp. ("Mammoth") pursuant to an agreement dated November 17, 2011 (the "Agreement") to conduct shareholder communications and investor relations activities on behalf of the Company. The Agreement is subject to the approval of the TSX Venture Exchange (the "Exchange").
Mammoth is a Vancouver based firm that provides strategic capital markets guidance to Exchange listed companies. Founded and led by Keir Reynolds, Mammoth specializes in advising public and private companies with their capital markets strategies to achieve industry-leading valuations. Keir Reynolds has been involved in the mining and energy sectors since 2005 and has assisted in the raising of more than $120M of equity for companies.
Pursuant to the Agreement, Mammoth will, among other things, introduce the Company to retail brokers, mining analysts, newsletter writers, bloggers, financial writers and institutional investors and advise and assist the Company in investor relations activities.
The term of the Agreement is for a period of six months. The Agreement may be terminated by either part on 15 days written notice. Mammoth with be paid a monthly fee of $7,500 plus taxes and will be granted stock options (the "Options") to purchase 40,000 common shares at an exercise price of $2.82 for a period of five years from this date, subject to the terms and conditions of the Company's stock option plan. The options will vest over a year pursuant to Exchange policies. In addition, the Company will reimburse Mammoth for expenses incurred in performing its duties under the Agreement.
Mammoth is at arm's length to Newstrike, and, to the Company's knowledge, neither Mammoth nor its principal presently have any interest, direct or indirect, in Newstrike or its securities, or any right or intent to acquire such an interest, save and except for the Options and 35,000 common shares of Newstrike. Mammoth does not intend to undertake any market making activities.
About Newstrike (TSX VENTURE:NES)
Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Current management and directors co-discovered Goldcorp's and Teck's significant discoveries in Guerrero Gold Belt in Guerrero State, currently in advanced stages of exploration and production.
Newstrike holds a 100% interest in certain exploration properties in Mexico located within two established mining districts; the Au (Ag-Cu) skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic Pb-Zn-Ag (Au-Cu) rich epithermal camp of the mining districts of Oaxaca State.Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.