VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 26, 2012) - Strachan Resources Ltd. (TSX VENTURE:SCN.P) ("Strachan" or the "Company") provides an update to its proposed Qualifying Transaction to acquire by way of option, subject to regulatory approval, 100% interest in the Chu Chua Property, which consists of 53 mineral claims covering a total area of 12,016 hectares (46.12 square-kilometres) approximately 20 km north of Barriere, British Columbia.
The Company and the optionors have amended their option agreement for the Chu Chua Property primarily to extend dates in the original agreement, but also to confirm a slightly modified configuration of the claims. In order to address the current poor market conditions for financings, the parties have now agreed to extend the date to close the transaction to March 31, 2013 with a possible further extension to facilitate closing. All financial terms basically remain as before, with all timing of payments, work commitments and share issuances now tied to the closing date of the transaction.
The Company has obtained an updated 43-101 technical report on the Chu Chua Property that it has now submitted, along with the option agreement as amended and other material, to the TSX Venture Exhange (Exchange) in its applicaton for Exchange approval of the transaction.
The Company will in due course announce a financing by private placement for funds to conduct the recommended work program on the Chu Chua Property and for working capital prior to regulatory approval of the Qualifying Transaction.
The Company has now paid a total of $20,000 in non-refundable deposits.
The board of directors of Strachan after the closing of the Qualifying Transaction will be composed of William Spratt, Ken Ellerbeck, Steve Mathiesen and Ian Graham, described below. The officers of the Company after the closing of the Qualifying
Transaction will be William Spratt, CEO and President, Gary Mathiesen, CFO and Steve Mathiesen, Secretary.
Mr. Ian Graham is an accomplished mining professional with over 20 years of experience in the development and exploration of mineral deposits, mostly gained with the major mining companies, Rio Tinto and Anglo American. Formerly Chief Geologist with the Project Generation Group at Rio Tinto, Mr. Graham has been involved with evaluation and pre-development work on several projects in Canada and abroad including the Diavik Diamond Mine (Northwest Territories, Canada), Resolution Copper (Arizona, USA), Eagle Nickel (Michigan, USA), Lakeview Nickel (Minnesota, USA) and Bunder Diamonds (India). Prior to his work with Rio Tinto, Ian held exploration geologist roles with Anglo American. Mr. Graham is currently President of Discovery Harbour Resources Corp., a private company founded in 2009 with the objective to discover and develop economic mineral deposits. Discovery's material asset is its 51% interest in the Wabassi Property located in Northern Ontario and it has signed an agreement for a reverse takeover of an Exchange listed company. Mr. Graham is also a director of Commerce Resources Corp., a junior mining company listed on the Exchange, and a director of Montan Capital Corp., an Exchange capital pool company. Mr. Graham resides in Vancouver and is the former chair of the University of British Columbia's Mineral Deposit Research Unit.
Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as terms and completion of the proposed transaction. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
ON BEHALF OF THE BOARD
STRACHAN RESOURCES LTD.
Steve Mathiesen, President
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.