Strategic Metals Ltd. Agrees to Sell Royalty Interests
November 09 2011 - 7:00AM
Marketwired
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
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.
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)
688-2522rdrechsler@strategicmetalsltd.comwww.strategicmetalsltd.com
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