Strategic Metals Ltd. Announces Plans for Exploration and Reorganization
June 1, 2010 -- Strategic Metals Ltd. (TSX-V: SMD) ("Strategic") is pleased to announce that an exploration budget of $5 million has been approved for the 2010 exploration season and that it is in the process of transferring some of its gold projects into two newly created, wholly owned subsidiaries. Strategic intends to list one or both of these subsidiaries on a publicly trading stock exchange under independent management and to distribute the majority of its shares in the resulting publicly trading company(s) to Strategic shareholders by way of Plan of Arrangement. The certainty, timing and potential value of the contemplated share distribution will depend upon a number of factors including but not limited to: exploration results, condition of financial markets, availability of suitable management personnel, shareholder approval and regulatory acceptance.
The formation of gold-focussed subsidiaries is designed to capitalize on rising interest in gold and to more effectively exploit the large portfolio of high quality mineral properties that Strategic has amassed. At present, Strategic holds interests in about 110 mineral properties in Yukon and British Columbia, and gold is the major commodity of interest at 51 of those properties. A total of 27 gold properties are expected to be transferred to the two subsidiaries. This will leave Strategic with about 49 wholly owned properties, 26 properties that are subject to option, sales or joint venture agreements and 8 properties in which it holds royalty interests. The retained property interests will remain under Strategic's direct ownership and are prospective for a wide variety of metals including: gold, silver, copper, zinc, lead, tungsten and nickel.
Strategic's 2010 exploration program is scheduled to include about 8000 m of diamond drilling plus surface exploration programs at several properties. Most of the drilling will test porphyry-style mineralization at the GK, Mars, Nikki and Keg properties. Mapping, prospecting and geochemical surveys are planned for about 40 other properties. Approximately 60% of Strategic's total expenditures in 2010 will be incurred on properties that are held by the new subsidiaries. The other 40% will be spent on properties held directly by Strategic.
For further information concerning Strategic or its various exploration projects please visit our website atwww.strategicmetalsltd.com or contact:
STRATEGIC METALS LTD.
Per: W. Douglas Eaton, President and Chief Executive Officer
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.