Copper Strike Limited
ASX Release ASX Code
24 August 2015 CSE
STRATEGY WITH RESPECT TO SYR SHARES
& CHANGE TO OFFICE DETAILS
The Board of Copper Strike Limited ("Copper Strike" or the "Company") provides the following update in relation to its corporate strategy.
Syrah Shareholding
The Company is pleased with progress being made at Syrah Resources Limited ("Syrah")
in relation to its Balama Graphite Project. Copper Strike owns 11 million shares in Syrah, which will be a holding of just under 5% when Syrah's current raising is completed.
The Company notes that Syrah is in the process of finalising the raising of $211 million in equity capital via an underwritten placement and rights issue. This raising allows Syrah to progress immediately into construction of its mine, processing plant and associated infrastructure to ensure production is targeted for the end of 2016/early 2017.
Copper Strike strongly supports the Syrah strategy in relation to the development of the Balama Project and furthering studies in relation to its proposed spherical graphite processing facilities in the United States and Mozambique and its proposed vanadium processing facility at Balama.
Copper Strike believes that the share price of Syrah has considerable upside once the equity capital raising has been completed, construction commences and Syrah releases further details in relation to its dealings with its offtake partners and other stakeholders. As such the directors are of the view that it is in shareholders' best interests for the Company to continue to hold this investment to ensure that the potential upside in relation to the development of the world class Balama Project is reflected within the Syrah share price.
In line with the above strategy, the Company believes that the offer price in the Syrah rights issue was very attractive. The Board did not believe however that raising cash through either issuing new Copper Strike shares (at a discount to market) or by taking on debt, was in the best interests of the Company. As such the Company renounced its rights which were sold into an institutional book build.
Cash Position
The Company has received funds of $578,947 in relation to the sale of its renounced
Registered Office
Copper Strike Limited ABN 16 108 398 983
Level 4 - 100 Albert Road, South Melbourne Victoria 3205 Australia Ph 03 9692 7222 Fax 03 9077 9233 www.copperstrike.com.au
Syrah rights. Together with the existing cash balance the Company has cash of approximately $1.0 million as of the date of this announcement.
Change to Office Details
The registered office and principal place of business of the Company have now changed
to the following:
Copper Strike Limited
Level 4
100 Albert Road
South Melbourne, Victoria 3205 Australia
PH: (03) 9692 7222 Fax (03) 9077 9233
Website www.copperstrike.com.au
Shareholders may also wish to contact the Chairman, Tom Eadie, directly on 0419 880 333 or [email protected].
Company Details
Issued Capital
106,844,810 shares
Share Price $0.215 (21 August 2015)
Directors & Management
Mr Tom Eadie - Non-Executive Chairman Mr Mark Hanlon - Non-Executive Director Mr Brendan Jesser - Non-Executive Director Ms Melanie Leydin - Company Secretary
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Registered Office
Copper Strike Limited ABN 16 108 398 983
Level 4 - 100 Albert Road, South Melbourne Victoria 3205 Australia Ph (03) 9692 7222 Fax (03) 9077 9233 www.copperstrike.com.au