Strategic Metals Ltd. Options the Lance and Lois Projects and Renews Normal Course Issuer Bid
TSX VENTURE: SMD
VANCOUVER, BC / ACCESSWIRE / November 28, 2018 / Strategic Metals Ltd. (TSX-V: SMD) ("Strategic") is pleased to announce it has granted West Pacific Ventures Inc. ("West Pacific") the optional right to purchase a 100% interest in Strategic's Lance and Lois projects, located in the Lansing area of central Yukon.
Lance and Lois Option
The Lance and Lois are promising intrusion related gold targets located adjacent to Goldstrike Resources Ltd.'s Plateau Property in central Yukon, where Newmont Mining Corp. has been funding exploration efforts since 2017.
Under the terms of the option to purchase agreement, West Pacific can earn its 100% interest by paying Strategic $400,000 over 4 years, and issuing Strategic 100,000 common shares of West Pacific upon West Pacific becoming a publicly traded company.
Upon earn-in, Strategic will retain a 2% net smelter return royalty in any commercial production, half of which (1% of the net smelter royalty interest) can be purchased by West Pacific for $1,000,000 any time prior to the commencement of commercial production. Strategic shall be entitled to receive a one-time cash payment of $2.00 for each ounce of gold (or equivalent in other metals) identified as a measured or indicated mineral resource, and an additional $2.00 for each ounce of gold (or equivalent in other metals) identified as a proven or probable mineral reserve.
Normal Course Issuer Bid
Strategic is making a new Normal Course Issuer Bid (the "New Bid") pursuant to the provisions of TSX Venture Exchange Policy 5.6, to succeed its existing Normal Course Issuer Bid (the "Old Bid"), as accepted by the TSX Venture Exchange on November 30, 2017.
Strategic has purchased no shares under the Old Bid, which will expire on November 30, 2018. The New Bid will consist of the acquisition by Strategic of up to 5,900,000 common shares of its capital stock, representing approximately 10% of the "public float" of 59,237,635 common shares upon the date of commencement of the New Bid. (There are currently 89,440,151 common shares of Strategic issued and outstanding.) The New Bid will commence on December 3, 2018, and will expire on December 2, 2019.
Strategic is making the New Bid, to succeed the Old Bid (which was limited to an aggregate of 7,100,000 common shares), because it is of the opinion that fluctuating global market conditions periodically (and currently) may result in unwarranted reductions in Strategic's share price that do not reflect the underlying value of its assets. Strategic will utilize unallocated cash resources to effect purchases under the New Bid with a view to capitalizing on these potential price weaknesses. Shares purchased under the New Bid will be made at Management's discretion based on market conditions, and will be returned to Strategic's treasury for cancellation.
The New Bid will be conducted on behalf of Strategic by PI Financial Corp., of Suite 1900 - 666 Burrard Street, Vancouver, B.C.
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 118 wholly-owned, 5 joint ventures, 4 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 strong cash position and large shareholdings in a number of active mineral exploration companies including 45.3% of GGL Resources Corp., 41.8% of Rockhaven Resources Ltd., 30.2% of Precipitate Gold Corp., 17.8% of Silver Range Resources Ltd., 9.1% Trifecta Gold Ltd., and 6.9% 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:
W. Douglas Eaton
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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.