Ecuador court gives green light for Silvercorp, Salazar’s El Domo project
The ruling removes the last major obstacle for the $250 million project, located 150 km northeast of Guayaquil.
Strategic Metals Ltd. (TSX VENTURE:SMD) (“Strategic”) is pleased to announce the closing of the Can$16.25 million private placement announced on February 23, 2011, consisting of the sale of 5,000,000 common shares at a price of $3.25 per share.
In connection with the closing of this private placement, Strategic has issued the following securities in payment of finders’ fees:
(a) 154,500 common shares; and
(b) 250,000 finders’ warrants, each entitling the holder to purchase one common share at a price of $3.35 until September 10, 2012.
All of the securities issued in connection with the closing of this private placement, including the securities issued in payment of finders’ fees, are subject to a hold period in Canada until July 11, 2011.
The proceeds from this private placement will be used for working capital purposes.
About Strategic Metals Ltd.
Strategic is a pre-eminent explorer and claimowner in the Yukon, with 61 properties under option to other companies, 15 properties subject to sales or joint venture agreements, and more than 80 wholly-owned properties. Strategic also holds royalty interests in 8 projects, including a net smelter return royalty on part of the Wolverine Deposit which is scheduled to commence production in 2011. With this closing, Strategic has approximately $28 million in cash and owns marketable shares of other resource companies with a total value exceeding $80 million. In addition, Strategic has created a wholly-owned subsidiary, Silver Range Resources Ltd. (“Silver Range”), most of whose shares are to be distributed to Strategic’s shareholders by way of a proposed Plan of Arrangement. Silver Range owns two very prospective exploration projects and has $17 million in cash, all of which has been advanced to it by Strategic.
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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of the Company in the United States. The Company’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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.
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.
Map is from Strategic Resources.
