Strategic Metals closes sale of Byng, Mars properties

Executive Summary

• Strategic Metals Ltd. has entered into a property purchase agreement with Cascadia Minerals Ltd. for the sale of the Byng and Mars mineral properties located in Southern Yukon.
• Cascadia acquires a 100% interest in the properties in exchange for an initial cash payment of $125,000 and the issuance of 500,000 common shares.
• Strategic Metals retains a 2% Net Smelter Return (NSR) royalty on the properties, with an option to sell half of this royalty (1%) to Cascadia for $2 million prior to a production decision.

Key Details

• Transaction Structure: Cascadia Minerals Ltd. acquires 100% interest in the Byng and Mars mineral properties (Southern Yukon, near Whitehorse).
• Consideration:
  • Cash payment of $125,000.
  • Issuance of 500,000 common shares to Strategic Metals Ltd.
  • Deemed price per share: $0.25.
• Royalty Terms:
  • Strategic Metals retains a 2% NSR royalty on the properties.
  • Cascadia has the right to purchase one-half of the NSR (a 1% royalty) for $2,000,000 (subject to CPI adjustment) at any time prior to a production decision.
• Existing Encumbrances: The DDH claims comprising part of the Mars property are subject to an existing 1% NSR royalty held by a third party.
• Company Context: Strategic Metals Ltd. is a project generator with 18 royalty interests, 14 projects under option, and a portfolio of 79 wholly owned projects. It holds significant shareholdings in Broden Mining Ltd. (32%), GGL Resources Corp. (30.4%), Rockhaven Resources Ltd. (28%), Silver Range Resources Ltd. (15.5%), and Trifecta Gold Ltd. (4.3%).

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