Business
Strategic Metals Ltd. Completes Three Option Agreements
VANCOUVER, BC / ACCESSWIRE / February 27, 2020 / Strategic Metals Ltd. (TSXV:SMD) ("Strategi...
About this update from Strategic Metals Ltd.
[{"type":"text","content":"Strategic Metals Ltd. Completes Three Option AgreementsVANCOUVER, BC / ACCESSWIRE / February 27, 2020 / Strategic Metals Ltd. (TSXV:SMD) (\"Strategic\") is pleased to announce that it has completed three option agreements relating to three of its projects, with an arm's length private Alberta company (\"the Company\").Hartless Joe OptionThe Company has been granted an option to acquire a 60% interest in the Hartless Joe project (the \"HJ Option\"), located 22 km east of Whitehorse, Yukon. The Hartless Joe property covers a 6.5 km by 3.5 km belt of high-grade gold±silver showings where 2019 drilling by Strategic intersected gold mineralization over an 800 m strike length (see Strategic news release dated January 16, 2020). The Company can exercise the HJ Option by incurring aggregate exploration expenditures of $5,000,000 by February 25, 2024. The Company and Strategic will then form a joint venture to continue exploration and development work on the property. Initial joint venture interests will be 60% (the Company) and 40% (Strategic).Forty Mile OptionThe Company has been granted an option to acquire 100% interests in the Clint and Magnum properties (the \"Forty Mile Option\"), both are road accessible and located within the Forty Mile Placer District northwest of Dawson City, Yukon. The Clint and Magnum are prospective for both polymetallic Volcanogenic Massive Sulphide (VMS) mineralization and orogenic gold mineralization. The Company can exercise the Forty Mile Option by making aggregate cash payments to Strategic of $150,000 and by incurring aggregate exploration expenditures of $1,850,000 by February 25, 2024. The Company at its sole discretion may satisfy the cash payment requirements under the Forty Mile Option by making any outstanding cash payments to Strategic at any time in advance of the required payment dates. The Company at its sole discretion may also satisfy the expenditure requirements under the Forty Mile Option by making a cash payment to Strategic equal to two-thirds (2/3) of the outstanding expenditure balance.Following the exercise of the Forty Mile Option, Strategic will retain a net smelter return royalty interest in all future commercial production from the properties equal to two percent (2%) on all precious metals and one percent (1%) on all non-precious metals. The Company may purchase half of t...