December 2, 2009 / 2:44 PM / 8 years ago

UPDATE 1-Newstrike to buy stake in gold project in Mexico

* Offers at least C$52 mln in cash and stock

* To buy 21.2 pct stake in gold exploration project * Shares jump 28 pct

Dec 2 (Reuters) - Gold and silver focused explorer Newstrike Capital Inc NESh.V said it agreed to buy a 21.2 percent stake in a gold exploration project in Mexico from a unit of Goldcorp Inc (G.TO) for at least C$52 million ($49.8 million) in cash and stock.

Newstrike said it would purchase a stake in the Morelos project from Desarrollos Mineros San Luis SA de CV for C$44.5 million in cash and 15 million Newstrike shares.

The Morelos project consists of 29,046 hectares, Newstrike said.

The company expects to finance the deal through private placement of subscription receipts. The deal is expected to close in early 2010.

Shares of the company were up 15 percent at 54 Canadian cents Wednesday morning on the Toronto Venture Exchange. They touched a 52-week high of 60 Canadian cents earlier in the session.

$1=1.045 Canadian Dollar Reporting by Isheeta Sanghi in Bangalore; Editing by Anne Pallivathuckal isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net

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