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Strategic Metals Ltd. Announces Early Warning Report Filing Regarding Its Shareholdings in Central Resources Corp.

10.07.2012  |  Marketwired

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/10/12 -- Strategic Metals Ltd. (TSX VENTURE: SMD) ("Strategic") announces that it has been issued 2,500,000 common shares of Central Resources Corp. ("Central") as consideration related to the exercise of a mineral property option. By agreement dated June 8, 2010 and amended March 30, 2011 and February 13, 2012, Strategic granted Central an option to acquire a 100% interest in a number of mineral properties located in the Whitehorse Mining District, Yukon Territory. With the issuance of the 2,500,000 shares, Central has fully exercised the option. Strategic has retained a 3% net smelter royalty interest in the properties, of which one-third (a 1% net smelter royalty interest) may be purchased by Central for $1 million at any time.


Prior to the issuance of the 2,500,000 shares, Strategic held 1,500,000 Central shares. The 4,000,000 Central shares now held by Strategic represent 12.07% of Central's current issued capital. All 4,000,000 Central shares are held directly by Strategic and are being held for investment purposes. Strategic may in the future take such actions in respect of its Central shares as it deems appropriate in light of the market circumstances then existing, including the potential purchase of additional shares of Central 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.


An early warning report regarding Strategic's shareholdings in Central will be filed on SEDAR and will be available under the Strategic profile 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.


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. - Corporate Information

W. Douglas Eaton

President and C.E.O.

(604) 688-2568


Strategic Metals Ltd. - Corporate Information

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
rdrechsler@strategicmetalsltd.com
www.strategicmetalsltd.com


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