Strategic Metals Ltd. Announces Acquisition of Additional Securities of Precipitate Gold Corp.
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 27, 2015) - Strategic Metals Ltd. (TSX VENTURE:SMD) ("Strategic") announces that on November 26, 2015 it purchased 10,000,000 units of Precipitate Gold Corp. ("Precipitate") at a price of $0.08 per unit pursuant to a private placement for total cash consideration of $800,000. Each unit consisted of one common share and one share purchase warrant, with each share purchase warrant entitling Strategic to purchase one additional common share of Precipitate at a price of $0.12 until November 26, 2016. As a result of the acquisition of these 10,000,000 units, Strategic currently holds the following securities of Precipitate:
(a) 15,068,827 common shares, representing 29.83% of the 50,515,141 common shares of Precipitate currently issued and outstanding; and
(b) 10,000,000 share purchase warrants, each entitling Strategic to purchase one common share of Precipitate at a price of $0.12 until November 26, 2016. In the event that Strategic exercises the 10,000,000 warrants, it will hold 25,068,827 Precipitate common shares, representing 41.43% of the then issued 60,515,141 Precipitate shares.
The securities of Precipitate as disclosed herein are held by Strategic for investment purposes. Strategic may increase or decrease its ownership of securities of Precipitate in the future, depending upon market conditions. There are no persons acting jointly or in concert with Strategic in respect of its securityholdings in Precipitate, nor has it entered into any agreements in respect of its securityholdings in Precipitate with any other person or persons.
"Precipitate has identified promising gold showings and geophysical targets on its extensive land holdings within the Tireo Gold Trend in the Dominical Republic," stated Douglas Eaton, President and CEO of Strategic. "The Dominical Republic hosts important gold deposits, including Pueblo Viejo, owned by Barrick Gold and Goldcorp. We see this investment as a good complement to our many projects in northwestern Canada."
This news release is being issued pursuant to National Instrument 62-103, which also requires a report to be filed by Strategic with each of the British Columbia and Alberta Securities Commissions containing information with respect to its securityholdings in Precipitate (an Early Warning Report).
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.
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.
Contact
Corporate Information
Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
(604) 688-2568
Investor Inquiries
Richard Drechsler
V.P. Communications
(604) 687-2522 or NA Toll-Free: (888) 688-2522
rdrechsler@strategicmetalsltd.com
www.strategicmetalsltd.com