Strategic Metals Announces Multiple Property Farm-Outs
June 15, 2010 - Strategic Metals Ltd. (TSX-V: SMD) ("Strategic") announces that, subject to regulatory acceptance, it has completed property agreements with arm's length parties related to the following mineral projects:
Tagai and Kenny Dam Projects
Under separate agreements completed May 26, 2010, Strategic granted Teslin River Resources Corp. ("Teslin") a two staged option to acquire up to a 75% interest in each of the Tagai and Kenny Dam copper-gold porphyry properties in northern British Columbia. The Tagai property consists of seven claim blocks and covers an area of approximately 3,040 hectares. The Kenny Dam property consists of five claim blocks and covers an area of approximately 2,100 hectares. The earn-in terms under both agreements are the same.
To exercise the stage one option and acquire a 50% interest in each of the Tagai and the Kenny Dam properties, Teslin is required to pay Strategic $400,000 and incur exploration expenditures of $3,000,000 by January 31, 2013. To exercise the stage two option and acquire an additional 25% interest in either property, Teslin is required to pay Strategic an additional $1,000,000 on or before March 31, 2013. Teslin may elect to pay half of the second stage option payment through the issuance of Teslin shares.
Both of the Tagai and Kenny Dam properties are subject to a 2% net smelter royalty held by an arm's length third party. One-half of the royalty interest in each property can be purchased at any time for $1,000,000. Teslin and Strategic will advance each property as a separate joint venture following Teslin's exercise of the stage one or stage two options, as applicable.
Byng and Hartless Joe Projects
By agreement dated June 7, 2010, Strategic granted Chai Cha Na Mining Inc. ("Chai") an option to acquire a 50% interest in the Byng and Hartless Joe properties, located in the east central Yukon. The Byng project is comprised of 20 mineral claims and the Hartless Joe project is comprised of 48 mineral claims. Chai can exercise the option by paying Strategic $150,000 by January 31, 2012 and by incurring exploration expenditures of $1,000,000 by January 31, 2013.
Following Chai's exercise of the option, Chai and Strategic will advance the project as a 50/50 joint venture. One mineral claim forming part of the Hartless Joe project is subject to a 2% net smelter royalty held by an arm's length third party. One-half of the royalty interest can be purchased at any time by the joint venture participants for $500,000.
By agreement dated June 8, 2010, Strategic granted Central Resources Corp. ("Central") an option to acquire a 100% interest in its Selwyn project, located in central Yukon. The Selwyn project consists of six gold exploration targets and is comprised of a total of 522 mineral claims. Central can exercise the option by paying $300,000 and issuing 3,000,000 shares to Strategic by February 15, 2012. Strategic has retained a 3% net smelter royalty in each of the six claim blocks. Central may purchase one-third of any of the royalty interests (a 1% net smelter interest) for $1,000,000 at any time after exercising the option.
BP 4 Claim
Under the terms of a binding letter of intent dated June 8, 2010, Strategic has been granted an option to acquire a 100% interest in the BP 4 mineral claim. The claim is located in the central Yukon and is surrounded by mineral claims comprising Strategic's Keg project. Strategic can exercise the option by issuing the property vendor a total of 250,000 shares by May 20, 2013. The property vendor has retained a 2% net smelter royalty interest, one-half of which can be purchased by Strategic for $1,000,000 at any time after the option has been exercised.
Strategic is a very well funded exploration company with working interests in approximately 100 mineral properties and royalty interests in a number of other projects, most notably the Wolverine Mine. For further information concerning Strategic or its various exploration projects please visit our website at www.strategicmetalsltd.com or contact:
Graham Downs or Richard Drechsler
Strategic Metals Ltd.
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.