Stratabound Improves Balance Sheet - $1.6M Liability from Legacy Lawsuit Successfully Dismissed

Rhea-AI Summary

Stratabound Minerals Corp. (TSXV: SB) (OTCQB: SBMIF) provides an update on a litigation matter related to its acquisition of California Gold Mining Inc. The matter involved claims from suppliers of CGM's former hemp business totalling $USD 1,214,000 ($CDN 1.6M), which was recently dismissed by a North Carolina court. This dismissal has improved the company's balance sheet by approximately $CDN 1M, positioning Stratabound for a strong 2024. Interim CEO Wendy T. Chan highlights the company's improved financial position and growth prospects.

Toronto, Ontario--(Newsfile Corp. - January 4, 2024) - Stratabound Minerals Corp. (TSXV: SB) (OTCQB: SBMIF) ("Stratabound" or the "Company") is pleased to provide an update on a longstanding litigation matter that existed when it acquired California Gold Mining Inc. ("CGM") in August 2021. The matter involved claims from suppliers of CGM's former hemp business totalling $USD 1,214,000 (*$CDN 1.6M). A Granville County, North Carolina, Court recently granted CGM's motion to dismiss the case. As a result of the dismissal of this litigation matter the Company is no longer exposed to this claim and its balance sheet has improved by approximately $CDN 1M as compared to its balance sheet at December 31, 2022.
(*exch: $USD = $CDN 1.32)

Interim CEO of Stratabound, Ms. Wendy T. Chan, comments, "As part of the condition in acquiring an asset at a compelling valuation in 2021, our Company had to absorb legacy agreements and liabilities. With this legacy liability cleaned up, our Company's balance sheet further improves and positions Stratabound for a strong 2024. We are poised for growth with a focused plan to advance our mineral assets systematically and expeditiously. We are now more attractive to investors."

ABOUT STRATABOUND MINERALS

Stratabound Minerals Corp. is a Canadian exploration and development company with grassroots and advanced exploration properties in highly prospective and safe mining jurisdictions.

Its Golden Culvert and Win Projects, Yukon, covering 99.5 km² across a 27-km strike length, are situated in a district-scale, high-grade-gold-mineralized trend within the southern portion of the Tombstone Gold Belt. Gold deposits and occurrences within the Belt include Fort Knox, Pogo, Brewery Creek and Dublin Gulch, and Snowline Gold's Valley target on its Rogue property in the Selwyn Basin.

Its McIntyre Brook Project, New Brunswick, covering 120 km² and a 17-km strike length in the emerging Triple Fault Gold Belt, is surrounded by Puma Exploration's Williams Brook Project (5.55 g/t Au over 50m) and is hosted by orogenic rocks of similar age and structure as New Found Gold's Queensway Project.

The Company is also advancing its Fremont Gold development project in the historic Mother Lode Gold Belt of California where 50,000,000 oz of gold has been produced. Fremont, located 500km north of Equinox Gold's Castle Mountain and Mesquite mines, has a PEA with an after-tax NPV of USD $217MM, a 21% IRR, 11-year LOM, averaging 118k ounces per annum at USD $1,750 gold. The project hosts an NI 43-101 resource of 1.16 MMoz at 1.90 g/t Au within 19.0 MMt Indicated, and 2.02 MMoz at 2.22 g/t Au within 28.3 MMt Inferred. The MRE evaluates only 1.4 km of the 4 km strike length of the Fremont property that features 4 gold-mineralized zones. Significantly, three step-out holes at depth hit structure, typical of orogenic deposits that often occur at depth. Fremont is located on private land in Mariposa, the original gold rush county and is 1.5 hours from Fresno, California. The property has year-round road access and is close to airports and rail. Please refer to the Fremont Gold project PEA dated Apr. 4, 2023 under NI 43-101 guidelines. The technical report has been reviewed and approved by independent "Qualified Persons" Eugene Puritch, P.Eng., FEC, CET, and Andrew Bradfield, P.Eng. both of P&E, and Travis Manning, P.E. of KCA.

The Company also holds a pipeline of early-stage exploration projects including the critical mineral Captain Cobalt-Copper-Gold Deposit in New Brunswick and the Dingman Gold Project, Ontario.

QUALIFIED PERSON STATEMENT

The scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill, Director, BSc (Hons) (Economic Geology - UCT), FAusIMM, and who is a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

For more information, please visit the Company's website at www.stratabound.com or contact:

Gary Nassif
Senior Vice President, Director
info@stratabound.com
+1 (416) 915-4157

Kevin Shum
Investor Relations
kevin@jeminicapital.com
+1 (647) 725-3888 ext 702

Forward-Looking Statements

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.

WARNING: The Company relies upon litigation protection for "forward-looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, failure to obtain regulatory, exchange or shareholder approval, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/193240

FAQ

What is the ticker symbol for Stratabound Minerals Corp?

The ticker symbols for Stratabound Minerals Corp. are TSXV: SB and OTCQB: SBMIF.

What was the litigation matter involving Stratabound Minerals Corp?

The litigation matter involved claims from suppliers of California Gold Mining Inc.'s former hemp business totaling $USD 1,214,000 ($CDN 1.6M).

What was the outcome of the litigation matter for Stratabound Minerals Corp?

The Granville County, North Carolina, Court recently granted CGM's motion to dismiss the case, resulting in an improved balance sheet for Stratabound by approximately $CDN 1M.

Who is the interim CEO of Stratabound Minerals Corp?

The interim CEO of Stratabound Minerals Corp is Ms. Wendy T. Chan.

What are the implications of the dismissal of the litigation matter for Stratabound Minerals Corp?

The dismissal of the litigation matter has improved the company's balance sheet and positioned it for growth in 2024.