Strategic Metals Ltd. Agrees to Sell Royalty Interests
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/09/11 -- Strategic Metals Ltd. (TSX VENTURE: SMD) ("Strategic") is pleased to announce that it has signed a binding letter agreement with Gold Royalties Corporation ("Gold Royalties"). Under the terms of the letter agreement Gold Royalties will acquire Strategic's net smelter royalty interests (the "Royalty Interests") in the Kink 3 mineral claim and the Northern Dancer property for $13.8 million, less any royalties earned on the Royalty Interests up to the closing date for the sale.
The Kink 3 mineral claim is owned by Yukon Zinc Corporation ("Yukon Zinc") and covers a portion of the Wolverine mineral deposit, currently being developed by Yukon Zinc. The Wolverine deposit is a high grade zinc-silver-copper-lead-gold volcanogenic massive sulphide deposit and is located in the east central Yukon. Strategic holds a 1% net smelter return royalty interest in that portion of the Wolverine deposit underlying the Kink 3 claim.
The net smelter royalty interest will be reduced from 1% to 0.5% after the royalty holder has received aggregate royalty payments of $500,000. The 0.5% royalty interest will continue to apply for the duration of all metal production from the Kink 3 claim. To date, Strategic has received total royalty payments from Yukon Zinc in the amount of $54,000.
Under the letter agreement with Gold Royalties, Strategic will also sell its 1% net smelter return royalty interest in the Northern Dancer property, currently owned by Largo Resources Ltd. The Northern Dancer property is located in south central Yukon and hosts a large tungsten-molybdenum porphyry system. The 1% net smelter royalty interest in the Northern Dancer property is not subject to any reduction and will apply to all future production from the property.
Completion of the sale of the Royalty Interests is scheduled to take place on January 16, 2012. The transaction remains subject to Gold Royalties obtaining suitable financing, the completion of a satisfactory due diligence review by Gold Royalties and the obtaining of any required consents.
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 .
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.
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.
Contacts:
Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
(604) 688-2568
Strategic Metals Ltd.
Bruce A. Youngman
Chairman
(604) 687-2522
Strategic Metals Ltd. - Investor Inquiries
Richard Drechsler
Corporate Communications
(604) 687 2522 or NA Toll-Free: (888) 688-2522
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Datum: 09.11.2011 - 13:00 Uhr
Sprache: Deutsch
News-ID 85748
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VANCOUVER, BRITISH COLUMBIA
Kategorie:
Mining & Metals
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