Gallagher pulls pin on Strike placement

Strike Resources Ltd said a $53 million investment by Russian billionaire Alisher Usmanov will not proceed, as market turmoil takes its toll on due diligence investigations.

Investigations by Mr Usmanov's investment vehicle Gallagher Holdings concluded yesterday for tranche two of an overall investment of $103 million in two tranches with the first tranche, worth $49.7 million, already completed.

Gallagher confirmed to Strike that the due diligence investigation had not been satisfied as a result of the uncertainty created by the international financial crisis.

However, Strike said Gallagher is keen to make a further investment in the company, with "good faith" negotiations continuing to replace tranche two with an alternative investment mechanism into Strike at an issue price of $2.75 per share.

Shares in Strike were down 7.5 cents to 76c at 11:03 AEST.