Strategic Metals Ltd. Sells Lithium Property to Equitorial Exploration Corp.
July 27, 2016, -- Strategic Metals Ltd. (TSX-V: SMD) ("Strategic") announces that it has sold 100% of its interest in the Li property to Equitorial Exploration Corp. ("Equitorial"). The Li property hosts the Little Nahanni Pegmatite Group lithium-cesium-tantalum pegmatite dykes and is located in the western Northwest Territories, adjacent to the Yukon border.
Under the terms of a property purchase agreement, Equitorial will issue 7,500,000 of its common shares and 2,500,000 share purchase warrants to Strategic. Five million of the shares will be issued to Strategic following TSX Venture Exchange (the "Exchange") acceptance of the transaction on behalf of Equitorial. The remaining 2,500,000 shares and the 2,500,000 warrants will be issued within one year of Exchange acceptance. Each of the warrants will entitle Strategic to purchase one additional Equitorial common share at a price of $0.10 at any time within 24 months of the issuance of the warrants.
Under the terms of the property purchase agreement, Equitorial will advance $100,000 to Strategic to cover the costs of Strategic’s 2016 work program on the Li property. The $100,000 will be repaid to Equitorial if the transaction does not receive Exchange acceptance. Strategic has also retained a 2% net smelter return royalty interest ("NSR") in all future production from the property. Equitorial can at any time, purchase one-half of the NSR from Strategic for $2,000,000.
The Little Nahanni Pegmatite Group consists of several dyke swarms, each containing multiple closely spaced dykes. Spodumene is a major component of several of the dykes. Channel samples across outcrops have assayed up to 1.59% Li2O over 10 m, while diamond drilling has cut intervals grading 1.20% Li2O over 10.94 m and 0.92% Li2O over 18.27 m.
The sample results reported in this news release are from channel and drill core samples that were analyzed at ALS Chemex in North Vancouver, British Columbia. Samples were crushed and split before being sieved to -150 mesh. They were then analysed using whole rock and meta-borate fusion (AAS; NAA). Diamond drill core samples were also analyzed at ALS Chemex using Li-OG63.
Lithium was reported in percent values and the conversion factor for Li to Li2O is 2.513.
Prior to finalizing its negotiations with Equitorial regarding the sale of the property, Strategic initiated a two week program consisting of mapping, prospecting and channel sampling. The program which is now complete was designed to evaluate grade, size and density of lithium-bearing pegmatite dykes within four of the dyke swarms comprising the LNPG complex.
The 2016 field program on the Li property was managed by Archer, Cathro & Associates (1981) Limited (Archer Cathro). Technical information in this news release has been approved by Heather Burrell, P. Geo., a senior geologist with Archer Cathro and a qualified person for the purpose of National Instrument 43-101.
About Strategic Metals Ltd.
Strategic is a project generator and the largest claim holder in Yukon, which the Fraser Institute recently rated as the best jurisdiction in Canada 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 $20 million and significant shareholdings in a number of active mineral exploration companies including 41.4% of Rockhaven Resources Ltd., 8.3% of ATAC Resources Ltd., 23.9% of Precipitate Gold Corp. and 16.5% of Silver Range Resources Ltd.
If you have any questions concerning Strategic or its properties, please contact Richard Drechsler.
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:
Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
Tel: (604) 688-2568
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.