Strategic Metals Ltd. Announces Property Exchange Agreement with Rockhaven Resources Ltd.
July 14, 2015 - Strategic Metals Ltd. (TSX-V: SMD) ("Strategic") announces that it has negotiated a property exchange agreement with Rockhaven Resources Ltd. ("Rockhaven"), pursuant to which Strategic has agreed to transfer five mineral properties, being the BBB, Sked/Desk, Dade, Queen and Nor properties in the Yukon, as well as make a $250,000 cash payment to Rockhaven, in exchange for Rockhaven's Plata, Mount Hinton/Gram, Groundhog/Grayling/Cyr, Zap and Kluane/Ellias properties in the Yukon. Strategic currently holds 48,847,500 common shares of Rockhaven, representing 46.59% of Rockhaven's currently issued and outstanding common share capital.
As this transaction is considered a "related party transaction" pursuant to the provisions of Multilateral Instrument 61-101, it will require "minority approval" from each of Strategic's and Rockhaven's shareholders at their Annual General and Special Meetings to be held later this summer, as well as acceptance from the TSX Venture Exchange.
"This property swap allows Rockhaven to consolidate its land position around its Klaza deposit while Strategic adds a number of drill-ready gold and silver projects to its portfolio." states Doug Eaton, CEO of Strategic. "It is a good deal because it strengthens the effective assets of both companies."
In support of this transaction, Strategic appointed a special committee of independent directors to review its merits; the special committee then retained Bruce McKnight Minerals Advisor Services ("McKnight") to prepare a "fairness opinion" in respect of the transaction, which will be included in the Management Information Circular to be distributed to Strategic's shareholders in connection with its Annual General and Special Meeting, at which minority approval from Strategic's shareholders for the transaction will be sought.
Based upon and subject to the limitations contained in the fairness opinion, and such other matters as McKnight has considered relevant, it is McKnight's opinion that, as of the date of the fairness opinion, the terms of the proposed transaction are fair from a financial point of view to Strategic's shareholders.
About Strategic Metals Ltd.
Strategic is a project generator and the largest claim holder in Yukon, which the Fraser Institute recently rated as best jurisdiction in the world for mineral potential. Strategic's portfolio of more than 100 projects is the result of 50 years of focussed exploration and research by a team with a track record of major discoveries. Current 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 similar to those at nearby deposits.
Strategic has a current cash position of over $25 million and significant shareholdings in a number of active mineral exploration companies including 46.59% of Rockhaven Resources Ltd., 8.6% of ATAC Resources Ltd., and 12.9% of Precipitate Gold Corp.
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 atwww.strategicmetalsltd.com or contact:
Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
Tel: (604) 688-2568
Tel: (604) 687-2522
NA Toll-Free: (888) 688-2522
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.