Strategic Metals Ltd. Completes Three Option Agreements
Strategic Metals Ltd. Completes Three Option Agreements
February 27, 2020 - Strategic Metals Ltd. (TSX-V: SMD) (“Strategic”) is pleased to announce that it has
completed three option agreements relating to three of its projects, with an arm’s length private Alberta
company (“the Company”).
Hartless Joe Option
The Company has been granted an option to acquire a 60% interest in the Hartless Joe project (the “HJ
Option”), located 22 km east of Whitehorse, Yukon. The Hartless Joe property covers a 6.5 km by 3.5 km
belt of high -grade gold±silver showings where 2019 drilling by Strategic intersected gold mineralization
over an 800 m strike length (see Strategic news release dated January 16, 2020). The Company can exercise
the HJ Option by incurring aggregate exploration expenditures of $5,000,000 by February 25, 2024. The
Company and Strategic will then form a joint venture to continue exploration and development work on the
property. Initial joint venture interests will be 60% (the Company) and 40% (Strategic).
Forty Mile Option
The Company has been granted an option to acquire 100% interests in the Clint and Magnum properties
(the “ Forty Mile Option”), both are road accessible and located within the Forty Mile Placer District
northwest of Dawson City , Yukon. The Clint and Magnum are prospective for both polymetallic
Volcanogenic Massive Sulphide (VMS) mineralization and orogenic gold mineralization. The Company can
exercise the Forty Mile Option by making aggregate cash payments to Strategic of $150,000 and by
incurring aggregate exploration expenditures of $1,850,000 by February 25, 2024. The Company at its sole
discretion may satisfy the cash payment requirements under the Forty Mile Option by making any
outstanding cash payments to Strategic at any time in advance of the required payment dates. The Company
at its sole discretion may also satisfy the expenditure requirements under the Forty Mile Option by making a
cash payment to Strategic equal to two-thirds (2/3) of the outstanding expenditure balance.
Following the exercise of the Forty Mile Option, Strategic will retain a net smelter return royalty interest in
all future commercial production from the properties equal to two percent (2%) on all precious metals and
one percent (1%) on all non-precious metals. The Company may purchase half of the royalty interest at any
time for $500,000.
Sixty Mile Option
The Company has been granted an option to acquire a 100% interest in the Sixty Mile project (the “SM
Option”) which is located within the second-most productive placer gold district in Yukon, near the Yukon –
Alaska border, 65 km west of Dawson City. The Sixty Mile project consists of the 73 wholly owned claims
(“SM property”) and 119 claims under option from a third party (“Sixty Mile property”). In 2019, drilling
by Strategic intersected multiple shear zones and strongly brecciated intrusive rock, associated with
widespread, intense pyritization and sericite -chlorite alteration indicating t he presence of a large
hydrothermal system (see Strategic news release dated January 16, 2020). The Company can exercise the
SM Option by making aggregate cash payments to Strategic of $100,000 and by incurring aggregate
exploration expenditures of $1,850,000 by February 25, 2024. The Company at its sole discretion may
satisfy the cash payment requirements under the SM Option by making any outstanding cash payments to
Strategic at any time in advance of the required payment dates. The Company at its sole discretion may also
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satisfy the expend iture requirements under the SM Option by making a cash payment to Strategic equal to
two-thirds (2/3) of the outstanding expenditure balance.
Following the exercise of the SM Option, Strategic will retain a net smelter return royalty interest in all
future commercial production from the SM property equal to two percent (2%) on all precious metals and
one percent (1%) on all non-precious metals. The Company may purchase half of the royalty interest at any
time for $500,000.
Included in the agreement wi th the SM Option was the assignment by Strategic to the Company of an
existing third party option held by Strategic to acquire a 100% interest in the Sixty Mile property. In
consideration for the assignment of the third party option, Strategic will retain a net smelter return royalty
interest in all future commercial production from the properties equal to one percent (1%) on all precious
metals and one-half of one percent (1/2%) on all non -precious metals. The Company may purchase half of
this royalty interest from Strategic for at any time for $250,000.
About Strategic Metals Ltd.
Strategic is a project generator with a portfolio of more than 130 projects that are the product of over 50
years of focussed exploration and research by a team with a track record of major discoveries. Current
projects include 11 2 wholly-owned, 5 joint ventures, 6 under option and 8 royalty interests. 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 that resemble those at nearby
deposits.
Strategic has a current cash position of over $ 7 million and large shareholdings in a number of active
mineral exploration companies including 42.3% of GGL Resources Corp., 36.3% of Rockhaven Resources
Ltd., 24.3% of Precipitate Gold Corp., 17.7% of Silver Range Resources Ltd., 8.7% Trifecta Gold Ltd., and
6.4% of ATAC Resources Ltd.
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:
Corporate Information
Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
Tel: (604) 688-2568
Investor Inquiries
Richard Drechsler
V.P. Communications
Tel: (604) 687-2522
NA Toll-Free: (888) 688-2522
http://www.strategicmetalsltd.com
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.