SMD Strategic Metals Ltd New

Strategic Metals Ltd. (TSX VENTURE:SMD) ("Strategic") announces that it has been
issued 5,068,827 common shares of Precipitate Gold Corp. ("Precipitate") as
partial consideration for the granting by Strategic to Precipitate of an option
entitling Precipitate to acquire a 100% interest in Strategic's Fireside
Project, located in the Watson Lake Mining District, Yukon Territory and in
northern British Columbia. Strategic will retain a 2% net smelter return royalty
on all precious metals commercial production and a 1% net smelter return royalty
on all non-precious metals commercial production from the property. To exercise
the option, Precipitate was required to pay $300,000 to Strategic and must incur
a total of $2,000,000 in exploration expenditures by December 31, 2013, of which
$425,000 has already been incurred.


Of the 5,068,827 Precipitate shares held by Strategic, a total of 1,222,460
shares are subject to a two year escrow period. 20% of these shares were
released from escrow on the listing of Precipitate's shares on the TSX Venture
Exchange (the "Exchange") on May 29, 2012, with an additional 20% to be released
from escrow every six months thereafter. The remaining 3,846,367 shares are
subject to a three year escrow agreement, with 10% having been released from
escrow on the listing of Precipitate's shares on the Exchange, with an
additional 15% to be released every six months thereafter.


Prior to the issuance of these shares, Strategic did not hold any Precipitate
shares. The 5,068,827 Precipitate common shares acquired by Strategic at closing
represent 19.9% of Precipitate's current issued capital. All of these shares
will be held directly by Strategic and are being held for investment purposes.
Strategic may in the future take such actions in respect of its Precipitate
shares as it deems appropriate in light of the market circumstances then
existing, including the potential purchase of additional shares of Precipitate
through open market purchases or privately negotiated transactions, or the sale
of all or portion of such holdings in the open market or in privately negotiated
transactions to one or more purchasers. Strategic also has the right to
participate in future financings by Precipitate so as to maintain its percentage
equity interest.


An early warning report regarding Strategic's shareholdings in Precipitate has
been filed on SEDAR and is available at www.sedar.com.


For additional information concerning Strategic Metals Ltd. please visit
Strategic's website at www.strategicmetalsltd.com.


CAUTIONARY NOTE: This news release includes certain "forward-looking
statements". Other than statements of historical fact, all statements included
in this release, including, without limitation, statements regarding future
plans and objectives of Strategic are forward-looking statements that involve
various risks and uncertainties. There can be no assurance that such statements
will prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Factors that could cause
actual results to differ materially from those expected by Strategic are those
risks described herein and from time to time, in the filings made by Strategic
with Canadian securities regulators. Those filings can be found on the Internet
at http://www.sedar.com.

Strategic Metals (TSXV:SMD)
Historical Stock Chart
From May 2024 to Jun 2024

Strategic Metals (TSXV:SMD)
Historical Stock Chart
From Jun 2023 to Jun 2024