Strategic Metals Ltd. Announces Closing Of $15,007,500 Private Placement
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESOctober 12, 2010 - Strategic Metals Ltd. (TSX-V: SMD) ("Strategic") is pleased to announce the closing of the $15,007,500 private placement announced by News Release dated September 22, 2010, consisting of the sale of 10,350,000 common shares at a price of $1.45 per share.
In connection with the closing of this private placement, Strategic has issued the following securities in payment of finders' fees:
- 491,625 finders' shares; and
- 517,500 finders' warrants, each entitling the holder to purchase one common share at a price of $1.50 until October 8, 2011.
The proceeds from this private placement will be used to finance 2011 exploration activities on Strategic's Yukon mineral projects, and for unallocated working capital purposes.
Strategic also announces that Tocqueville Asset Management, L.P. ("Tocqueville"), on behalf of one or more investment funds and managed accounts (collectively, the "Accounts"), acquired ownership of all of the 10,350,000 common shares issued pursuant to this private placement. As a result of the purchase of these shares, Tocqueville, on behalf of one or more Accounts, now has authority to exercise control or direction over 10,350,000 common shares of Strategic, representing 13.33% of the 77,615,851 common shares of Strategic currently issued and outstanding. Tocqueville is a New York-based investment management firm.
Strategic is a well-funded resource company with a large and diverse portfolio of exploration projects, mostly located in Yukon Territory. 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
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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.