14 cents return per share, page-5

Announcement today ? ?? .... binding sale agreement was (expected)) to be finalised on or before August 1.


Copper Strike gives back to shareholders


Thursday, 21 July 2011


COPPER Strike says it will return at least $A15 million to shareholders from the $19.1 million in cash it receives from the sale of its flagship Einasleigh project in north Queensland to Kagara.



In a statement, the Melbourne-based company said it plans to return 14c per share to its shareholders.

Copper Strike will retain up to $4 million from the Einasleigh sale, which would be spent on new project opportunities.

?Your board has commenced the process of evaluating a number of quality project opportunities and will keep shareholders updated of developments,? Copper Strike said.

The news comes after a small group of Copper Strike shareholders called for a general meeting to appoint four new directors to the company?s board earlier this month.

The shareholders, who in total hold about 5.4% of Copper Strike, are seeking to appoint former Elders Resources boss Geoff Lord as well as Kingsgate Consolidated chief financial officer Peter Warren, New Age Exploration director Adrien Wing and lawyer Nicholas Stretch as directors.

At the time, Copper Strike said it would seek to hold the requisitioned meeting on the same day as the shareholder vote on the Einasleigh transaction.

However in today?s release, the company said the group of shareholders have refused this request without reason, resulting in additional cost and inconvenience to Copper Strike and its shareholders.

The requisitioned general meeting has been scheduled for August 19.

Regarding the proposed sale of Einasleigh to Kagara, Copper Strike said a binding sale agreement was expected to be finalised on or before August 1.

Copper Strike also noted that Kagara was not supportive of the move to appoint the four new directors to the company?s board.

Einasleigh comprises a tenement package covering a total area of about 450 square kilometres and is located 350km northwest of Townsville.

It lies immediately to the southwest of the Mount Garnet copper and polymetallic processing facilities and to the northwest of its Thalanga polymetallic processing facility.

The project also has a measured, indicated resource of 15 million tonnes at 0.84% copper at the Kaiser Bill deposit and 1.1Mt at 2.9% copper at the Einasleigh deposit.

Shares in Copper Strike closed 2c higher at 15c.