Stratton Resources Inc. (TSX VENTURE: SI) ("Stratton" or the
"Company") announces the closing of its previously announced
private placement financing (the "Financing").
On May 19, 2011 the Company announced the Financing in
conjunction with its proposed acquisition of all of the outstanding
shares of privately held AZ Copper Corp (the "Acquisition"). Upon
completion of the Acquisition, the Company will hold an option to
earn a 90% interest in the MAC Molybdenum Project (British
Columbia) and a right to purchase a 100% interest in the Bear
Canyon Project (Arizona).
The Company has now closed the Financing and raised a total of
$8.5 million. The Financing consisted of the issuance of 2,588,764
flow-through shares at $1.50 per share for a total of $3.9 million
and the issuance of 3,092,966 non flow-through units at $1.50 per
unit for a total of $4.6 million. The non flow-through units were
comprised of one share and one warrant exercisable for one year at
$1.50. All securities are subject to a four-month hold. If Stratton
shares trade above $2.00 for any 20 consecutive day period after
the four-month hold, the Company can accelerate the expiry of the
warrants to 30 days.
The Company has now granted options to purchase 1,455,000 common
shares of Stratton to officers, directors, consultants and
employees of Stratton. The options are exercisable to purchase
common shares at a price of $1.50 for a period of five years and
are subject to vesting conditions.
The principal conditions to the Acquisition have been met
including judicial and shareholder approvals and the Company is
awaiting final TSX Venture approval. Upon completion of the
Acquisition, 5.0 million shares will be issued to AZ Copper Corp
shareholders resulting in there being 14,547,082 common shares of
Stratton issued and outstanding on an undiluted basis. Including
warrants and stock options granted, there will be a total of
21,300,048 issued and outstanding shares on a fully diluted basis.
The Company has proposed a 2:1 stock split to be approved at its
August 12, 2011 Annual General Meeting.
Upon completion of the Acquisition, the principals of the
Company will collectively hold 3,255,082 common shares that will be
subject to customary escrow. The Company's stock will resume
trading on the TSX Venture exchange on upon closing of the
Acquisition under the ticker symbol "SI".
Management Team
The Company is pleased to announce that it has put in place an
experienced management team to advance its exploration
programs.
Richard Haslinger, P.Eng., will be responsible for all
exploration activities for the Company as its Chief Operating
Officer. Richard is a professional geological engineer with over 25
years of experience in the exploration industry. During the last 15
years Richard has managed numerous multi-disciplinary exploration
and deposit delineation projects at sites ranging from Alaska to
South Africa. Recently he has provided exploration guidance and
drill program management to Keegan Resources as VP Exploration.
George Nicholson, P.Geo., will be Vice President Exploration.
George has been successful in exploration and discovery of mineral
deposits throughout the Americas with a particular focus in South
America and British Columbia. George was a founder of AZ Copper and
was responsible for the discovery of the MAC property early in his
career.
Peter Rees, CA will be Chief Financial Officer. Peter has worked
with Canadian and United States publically listed mining companies
for the past seven years. He currently also holds the position of
CFO at Cayden Resources Inc. and was recently the corporate
controller at Keegan Resources Inc. Previously, he was a manager at
Deloitte and Touche LLP where he focused on providing both audit
and consulting services to a number of Vancouver's largest public
mining companies.
Jason Leikam will be Vice President Corporate Development. Jason
was a founder of AZ Copper and has been involved in the junior
resource sector since 1999, with a focus in marketing and investor
relations. From 2001 through 2006, Mr. Leikam operated two
successful investor relations firms that specialized in the junior
exploration and development sector. In 2007, Mr. Leikam joined one
of his clients, Silvermex Resources, to serve as manager of
Corporate Development through 2010.
Stratton President and CEO, Greg McCunn commented, "With $8.5
million in treasury and an experienced management team in place, we
look forward to aggressively advancing our exploration programs on
both the MAC and Bear Canyon Project sites over the coming
months."
Mineral Projects
On completion of the Acquisition Stratton will hold an option to
earn a 90% interest in the MAC Molybdenum Project located
approximately 90 km north of Thompson Creek's Endako molybdenum
mine. Historical exploration work completed on the Mac property has
identified significant zones of porphyry molybdenum and copper
mineralization. Exploration permits are in place to immediately
begin a $4.6 million two-phase program consisting of data
compilation, camp construction, airborne geophysics, IP geophysics
testing the known mineralized zones and approximately 14,000 meters
of diamond drilling with the objective to initiate resource
definition of known mineralization.
On completion of the Acquisition Stratton will also hold the
right to purchase a 100% interest in the Bear Canyon Copper Project
located in south-eastern Arizona. Bear Canyon was discovered by
surface work and is a unique style of deposit that consists of low
sulphide porphyry mineralization. The property has not been
previously drill tested. Two sub-parallel I.P. anomalies are
present, running a length of 1400m with a combined width of 900m.
These anomalies are open on strike and to depth and drill targets
have been identified from this geophysical work. Permits have been
received for an initial $0.6 million drill program and a follow-up
$0.9 million program consisting of additional geophysics and drill
testing.
In addition, the Company holds a 100% interest in the Mt Hayes
copper porphyry project located on the South Coast of BC. The
Company has also signed a Letter of Intent on the Lunar copper
porphyry project located 50km north of the Kemess mine (Northgate
Minerals) in northern BC.
For more information please visit our website at:
www.strattonresources.com
On behalf of the Board of Directors,
Greg McCunn, President & CEO
About Stratton Resources:
Stratton Resources Inc. is a Vancouver-based Exploration Company
focused on the discovery and development of porphyry
copper/molybdenum deposits in British Columbia and Arizona. It
plans to rapidly advance exploration drilling programs on its MAC
molybdenum project in Northern British Columbia and its Bear Canyon
Copper porphyry project in Southern Arizona.
Disclosure Notes
The above release contains forward looking information which in
Stratton's view is based on reasonable assumptions and estimates.
There can be no assurance that forward looking statements will
prove to be accurate and are subject to may factors beyond the
control of Stratton including third party consents, regulatory
approvals the state of capital markets and the appetite for higher
risk junior resource companies. For further details about Stratton
and the risks it faces see its public filings at www.sedar.com.
The securities referred to herein have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the United States or to, or
for the benefit of, U.S. persons (as defined in Regulation S under
the U.S. Securities Act) unless registered under the U.S.
Securities Act and applicable state securities laws or pursuant to
an exemption from such registration requirements.
Neither the TSX Venture Exchange nor any other regulatory
authority accepts responsibility for the adequacy or accuracy of
this release.
Contacts: Stratton Resources Inc. Greg McCunn President &
CEO (604) 683-8193 (604) 683-8194 (FAX) info@strattonresources.com
www.strattonresources.com
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