Strategic Metals Ltd. Vends 3 Yukon Silver Projects
Vancouver, BC – February 11, 2021 – Strategic Metals Ltd. (TSX-V:SMD) ("Strategic" or "the Company") is pleased to announce that it has signed a binding letter of intent (the "LOI") with Honey Badger Silver Inc. (TSX-V:TUF) ("Honey Badger") to vend three of its silver-focused Yukon Properties: Groundhog, Hy, and Plata.
"Strategic is happy to be working with Chad Williams and the Honey Badger team," states Strategic CEO Doug Eaton. "Honey Badger's financial and technical strengths significantly increase Strategic shareholders' leverage to the current bull market in silver."
Plata property - lies within the Tintina Gold Belt and displays a number of similarities to the Keno Hill Silver Camp located about 180 km west. A reported 2,041 tonnes of hand sorted material was shipped from high grade veins on the Plata property to a smelter, yielding about 9,020 kg (290,000 ounces) of silver; this equates to a recovered silver grade of approximately 4,420 grams per tonne (g/t) silver.
Groundhog property - Silver mineralization was first discovered in the Groundhog area in 1956. Historical exploration programs on the road accessible property have yielded rock samples that returned assays of up to 13,028 g/t silver, 85% lead, 4.46% zinc and 3.73% copper, but did not evaluate the gold potential of the project. Given Groundhog falls within a belt of high-grade gold occurrences, including the former Ketza Mine, located 30 km to the east, in 2019 a Strategic completed a prospecting program which discovered oxidized breccia that assayed 5.91 g/t gold.
Hy property - The road accessible Hy property covers many silver occurrences that were first discovered on the property in 1964. Trench results include 370.3 g/t silver, 14.01% zinc and 8.22% lead over 3.20 m at the Miko Zone and 684 g/t silver, 9.30% zinc and 11.01% lead at the Dusty Zone.
In consideration for a 100% interest in the Properties, Honey Badger has agreed to issue to Strategic common shares in the capital of Honey Badger equal to 19.9% of the issued and outstanding common shares following a $3 million equity financing and grant to Strategic the right to participate in the next three equity financings undertaken by the Company after the transaction's closing on or before April 30, 2021 or on such other date as may be mutually agreed to by the parties. Strategic will retain a 2% net smelter royalty on minerals other than silver. A Definitive Agreement is anticipated prior to March 12, 2021.
Technical information in this news release has been approved by Heather Burrell, P.Geo., a geologist with Archer, Cathro & Associates (1981) Limited and qualified person for the purpose of National Instrument 43-101.
About Strategic Metals Ltd.
Strategic is a project generator with a portfolio of more than 130 projects that are the product of over 50 years of focussed exploration and research by a team with a track record of major discoveries. Current projects include more than 80 properties where precious metals are a major component. Projects available for option, joint venture or sale include drill-confirmed prospects and drill-ready targets with high-grade surface showings and/or geochemical anomalies and geophysical features that resemble those at nearby deposits.
Strategic has a current cash position of over $9 million and large shareholdings in a number of active mineral exploration companies including 38.9% of GGL Resources Corp., 33.5% of Rockhaven Resources Ltd., 19.2% of Precipitate Gold Corp. and 18.7% of Silver Range Resources Ltd. All of these companies are well funded and are engaged in promising exploration projects. Strategic also owns 21.9% of Terra CO2 Technologies Holdings Inc., a private Delaware corporation which recently completed a US$9.2 million financing to advance its environmentally-friendly, cost-effective alternative to Portland cement. The current value of Strategic's stock portfolio is approximately $33 million.
ON BEHALF OF THE BOARD
"W. Douglas Eaton"
President and Chief Executive Officer
For further information concerning Strategic or its various exploration projects please visit our website at www.strategicmetalsltd.com or contact:
Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
Tel: (604) 688-2568
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.
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.