VANCOUVER, BC / ACCESSWIRE / February 27, 2020 / Strategic Metals Ltd. (TSXV:SMD) ("Strategic") is pleased to announce that it has completed three option agreements relating to three of its projects, with an arm's length private Alberta company ("the Company").
Hartless Joe Option
The Company has been granted an option to acquire a 60% interest in the Hartless Joe project (the "HJ Option"), located 22 km east of Whitehorse, Yukon. The Hartless Joe property covers a 6.5 km by 3.5 km belt of high-grade gold±silver showings where 2019 drilling by Strategic intersected gold mineralization over an 800 m strike length (see Strategic news release dated January 16, 2020). The Company can exercise the HJ Option by incurring aggregate exploration expenditures of $5,000,000 by February 25, 2024. The Company and Strategic will then form a joint venture to continue exploration and development work on the property. Initial joint venture interests will be 60% (the Company) and 40% (Strategic).
Forty Mile Option
The Company has been granted an option to acquire 100% interests in the Clint and Magnum properties (the "Forty Mile Option"), both are road accessible and located within the Forty Mile Placer District northwest of Dawson City, Yukon. The Clint and Magnum are prospective for both polymetallic Volcanogenic Massive Sulphide (VMS) mineralization and orogenic gold mineralization. The Company can exercise the Forty Mile Option by making aggregate cash payments to Strategic of $150,000 and by incurring aggregate exploration expenditures of $1,850,000 by February 25, 2024. The Company at its sole discretion may satisfy the cash payment requirements under the Forty Mile Option by making any outstanding cash payments to Strategic at any time in advance of the required payment dates. The Company at its sole discretion may also satisfy the expenditure requirements under the Forty Mile Option by making a cash payment to Strategic equal to two-thirds (2/3) of the outstanding expenditure balance.
Following the exercise of the Forty Mile Option, Strategic will retain a net smelter return royalty interest in all future commercial production from the properties equal to two percent (2%) on all precious metals and one percent (1%) on all non-precious metals. The Company may purchase half of the royalty interest at any time for $500,000.
Sixty Mile Option
The Company has been granted an option to acquire a 100% interest in the Sixty Mile project (the "SM Option") which is located within the second-most productive placer gold district in Yukon, near the Yukon - Alaska border, 65 km west of Dawson City. The Sixty Mile project consists of the 73 wholly owned claims ("SM property") and 119 claims under option from a third party ("Sixty Mile property"). In 2019, drilling by Strategic intersected multiple shear zones and strongly brecciated intrusive rock, associated with widespread, intense pyritization and sericite-chlorite alteration indicating the presence of a large hydrothermal system (see Strategic news release dated January 16, 2020). The Company can exercise the SM Option by making aggregate cash payments to Strategic of $100,000 and by incurring aggregate exploration expenditures of $1,850,000 by February 25, 2024. The Company at its sole discretion may satisfy the cash payment requirements under the SM Option by making any outstanding cash payments to Strategic at any time in advance of the required payment dates. The Company at its sole discretion may also satisfy the expenditure requirements under the SM Option by making a cash payment to Strategic equal to two-thirds (2/3) of the outstanding expenditure balance.
Following the exercise of the SM Option, Strategic will retain a net smelter return royalty interest in all future commercial production from the SM property equal to two percent (2%) on all precious metals and one percent (1%) on all non-precious metals. The Company may purchase half of the royalty interest at any time for $500,000.
Included in the agreement with the SM Option was the assignment by Strategic to the Company of an existing third party option held by Strategic to acquire a 100% interest in the Sixty Mile property. In consideration for the assignment of the third party option, Strategic will retain a net smelter return royalty interest in all future commercial production from the properties equal to one percent (1%) on all precious metals and one-half of one percent (1/2%) on all non-precious metals. The Company may purchase half of this royalty interest from Strategic for at any time for $250,000.
About Strategic Metals Ltd.
Strategic is a project generator with a portfolio of more than 130 projects that are the product of over 50 years of focussed exploration and research by a team with a track record of major discoveries. Current projects include 112 wholly-owned, 5 joint ventures, 6 under option and 8 royalty interests. Projects available for option, joint venture or sale include drill-confirmed prospects and drill-ready targets with high-grade surface showings, geochemical anomalies and geophysical features that resemble those at nearby deposits.
Strategic has a current cash position of over $7 million and large shareholdings in a number of active mineral exploration companies including 42.3% of GGL Resources Corp., 36.3% of Rockhaven Resources Ltd., 24.3% of Precipitate Gold Corp., 17.7% of Silver Range Resources Ltd., 8.7% Trifecta Gold Ltd., and 6.4% of ATAC Resources Ltd.
ON BEHALF OF THE BOARD
"W. Douglas Eaton"
President and Chief Executive Officer
For further information concerning Strategic or its various exploration projects please visit our website at www.strategicmetalsltd.com or contact:
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Corporate Information Strategic Metals Ltd. |
Investor Inquiries Richard Drechsler |
This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
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SOURCE: Strategic Metals Ltd.