Sentient IV acquires securities of Strateco Resources Inc.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES AND NOT FOR DISSEMINATION IN THE UNITED STATES

MONTREAL, Feb. 29, 2012 /CNW Telbec/ - Sentient Executive GP III, Limited ("Sentient III") announces that, in connection with a private placement with Strateco Resources Inc. ("Strateco"), Sentient Executive GP IV, Limited ("Sentient IV") has acquired control over 6,180,000 units (the "Units") of Strateco on February 29, 2012. Sentient IV is a related entity of Sentient III, an insider of Strateco, which may be considered as acting jointly or in concert with Sentient III under relevant securities laws.

Each Unit is comprised of one common share in the capital of Strateco (a "Strateco Share") and one half common share purchase warrant of Strateco (each whole common share purchase warrant, a "Strateco Warrant"). Each Strateco Warrant entitles the holder thereof to acquire a Strateco Share at a price of $0.65 per share until February 29, 2014. As such, Sentient IV acquired control over 6,180,000 Strateco Shares and 3,090,000 Strateco Warrants.

Sentient III has control or direction over 2,689,474 Strateco Shares (representing approximately 1.61% of the outstanding Strateco Shares), the right to acquire 9,189,474 Strateco Shares through 9,189,474 share purchase warrants of Strateco (the "Sentient III Warrants") and a $14,905,000 principal amount convertible note (the "Strateco Note") issued by Strateco.  The Strateco Note matures on February 27, 2015 and the principal amount thereof is convertible into fully paid and non-assessable Strateco Shares at a conversion price of $0.95 per share.  The Strateco Note does not bear interest.

In the event all of the Sentient III Warrants are fully exercised and assuming the conversion in full of the principal amount of the Strateco Note, Sentient III would acquire control over a maximum of 27,568,422 Strateco Shares (including the 2,689,474 Strateco Shares over which Sentient III has control or direction). These combined holdings would represent approximately 14.35% of the outstanding Strateco Shares, calculated on a partially diluted basis assuming the full exercise of the Sentient III Warrants and the full conversion of the principal amount of the Strateco Note only.

Sentient IV has control or direction over 6,180,000 Strateco Shares (representing approximately 3.70% of the outstanding Strateco Shares) and the right to acquire 3,090,000 Strateco Shares through 3,090,000 Strateco Warrants. In the event all of the 3,090,000 Strateco Warrants are fully exercised, Sentient IV would acquire control over a maximum of 9,270,000 Strateco Shares (including the 6,180,000 Strateco Shares over which Sentient IV has control or direction). These combined holdings would represent approximately 5.44% of the outstanding Strateco Shares, calculated on a partially diluted basis assuming the full exercise of the 3,090,000 Strateco Warrants only.

Sentient III and Sentient IV have control or direction over 8,869,474 Strateco Shares in the aggregate (representing approximately 5.30% of the outstanding Strateco Shares), in the aggregate 12,279,474 Sentient III Warrants and Strateco Warrants and the Strateco Note. In the event all of the Sentient III Warrants and Strateco Warrants are fully exercised and assuming the conversion in full of the maximum principal amount of the Strateco Note, these combined holdings would represent approximately 18.87% of the outstanding Strateco Shares, calculated on a partially diluted basis assuming the full exercise of the Sentient III Warrants and Strateco Warrants and the full conversion of the maximum principal amount of the Strateco Note only.

Sentient IV acquired the 6,180,000 Units for investment purposes only and not with a view to materially affecting control of Strateco. Sentient III and its joint actors have no present intention of acquiring beneficial ownership or control over additional securities of Strateco.


SOURCE SENTIENT EXECUTIVE GP IV, LIMITED

For further information:

Sue Bjuro at (345) 946-0933

Profil de l'entreprise

SENTIENT EXECUTIVE GP IV, LIMITED

Renseignements sur cet organisme

SENTIENT EXECUTIVE GP III LIMITED

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.