Strategic Metals Announces Termination of Royalty Purchase Agreement
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/16/12 -- Strategic Metals Ltd. (TSX VENTURE: SMD) ('Strategic') announces that the letter agreement with Gold Royalties Corporation ('Gold Royalties') as reported on November 9, 2011 has been terminated. Under the terms of the letter agreement, Gold Royalties was granted the right to purchase Strategic's net smelter royalty interests (the 'Royalty Interests') in the Kink 3 mineral claim and the Northern Dancer property for $13.8 million.
Based on current market conditions, the sale of the Royalty Interests was not completed by January 16, 2012 and the parties have agreed to terminate the letter agreement.
About Strategic Metals Ltd.
Strategic is a pre-eminent explorer and claimholder in the Yukon, with an exceptional portfolio of 160 property and royalty interests. Strategic currently has approximately $30 million in cash and owns marketable shares of other resource companies, including 9.7% of ATAC Resources Ltd., 18.8% of Silver Range Resources Ltd., 26.1% of Rockhaven Resources Ltd., and 19.9% of Wolverine Minerals Corp.
ON BEHALF OF THE BOARD
W. Douglas Eaton, President and Chief Executive Officer
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:
Corporate Information:
Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
(604) 688-2568
Strategic Metals Ltd.
Bruce A. Youngman
Chairman
(604) 687-2522
Investor Inquiries:
Richard Drechsler
Corporate Communications
(604) 687-2522 or NA Toll-Free: (888) 688-2522
rdrechsler@strategicmetalsltd.com
www.strategicmetalsltd.com
