Strategic Metals Closes Sale of Royalty Interests and Receives US$30 Million Payment
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/10/12 -- Strategic Metals Ltd. (TSX VENTURE: SMD) ("Strategic") announces that the royalty purchase transaction reported on August 3, 2012 has now closed. Strategic has received US$30 million and sold its royalty interests in the Casino, Logtung, and Wolverine deposits to 8248567 Canada Limited, an arm's length purchaser. Strategic will receive an additional cash payment of US$6 million if the operator of the Casino project has obtained all necessary permits and authorizations prior to December 31, 2016 to construct and operate the project as a producing mine.
With the closing of the royalty sale, Strategic has increased its cash position to approximately $51 million and owns marketable shares of other resource companies currently valued at approximately $41 million. These shareholdings include 9.6% of ATAC Resources Ltd., 18.8% of Silver Range Resources Ltd., 28.0% of Rockhaven Resources Ltd, 19.9% of Precipitate Gold Corp., and 19.9% of Wolverine Minerals Corp.
Strategic is also an active explorer with interests in over 160 properties, including 65 that are under option to other companies and 20 where Strategic holds net smelter return royalty interests.
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" including receipt of the additional US$6 million from the royalty sale. 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's cash position and value of marketable securities is unaudited and estimated as of August 8, 2012. The value of marketable securities changes on a daily basis.
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
