Strategic Metals Announces Alotta Property Option

Rhea-AI Summary

Strategic Metals Ltd. has entered a property option agreement with Benjamin Hill Mining Corp. for a 60% interest in the Alotta project in Yukon. This un-drilled porphyry prospect shows a significant copper, gold, and molybdenum anomaly over 4 km by 1 km. Benjamin is required to pay $500,000 by January 2028 and invest $11 million in exploration by the end of 2027. Upon exercising the option, a joint venture will be formed to explore the property further. Strategic holds a cash position of approximately $3.6 million and various significant investments in other mining companies, enhancing its growth potential.

Positive

• Property option agreement with Benjamin Hill Mining Corp. for Alotta project enhances growth opportunities.
• Alotta project presents a significant multi-element soil geochemical anomaly, enriched in copper, gold, and molybdenum, indicating strong exploration potential.
• Strong cash position of approximately $3.6 million supports ongoing operations and investment activities.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / January 18, 2023 / Strategic Metals Ltd. (TSXV:SMD) ("Strategic") is pleased to announce that it has entered into a property option agreement with Benjamin Hill Mining Corp. (CSE:BNN)(OTCQB:BNNHF) ("Benjamin") under which Benjamin can acquire a 60% interest in the Alotta project, located in the Whitehorse Mining District, Yukon Territory.

The Alotta project hosts an un-drilled porphyry prospect that is situated in a similar geological setting and in close proximity to Western Copper and Gold's Casino Deposit. Alotta is marked by a pronounced magnetic low that coincides with a strong, multi-element soil geochemical anomaly. The core of the geochemical anomaly is enriched in copper, gold and molybdenum and measures 4 km by 1 km. It is surrounded by a distal halo with high lead, zinc and silver values. The Alotta soil geochemical signature exhibits classical features commonly associated with large porphyry deposits. The property is permitted for advanced exploration and only requires an induced polarization survey prior to drill testing.

Benjamin can exercise the option by: (i) making aggregate cash payments to Strategic of $500,000 by January 17, 2028; and (ii) incurring aggregate exploration expenditures of $11 million on the property by the end of 2027. Following the exercise of the option, Benjamin and Strategic will form a 60/40 joint venture to further explore and develop the property.

Qualified Person

Technical information in this news release has been approved by Heather Burrell, P. Geo., a senior geologist with Archer, Cathro & Associates (1981) Limited and a qualified person for the purpose of National Instrument 43-101.

About Strategic Metals Ltd.

Strategic is a project generator with 23 royalty interests, seven projects under option to others, and a portfolio of more than 90 wholly owned projects that are the product of over 50 years of focussed exploration and research by a team with a track record of major discoveries. 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 approximately $3.6 million and large shareholdings in several active mineral exploration companies including 32.8% of Broden Mining Ltd., 34.5% of GGL Resources Corp., 29.6% of Rockhaven Resources Ltd., 19.6% of Honey Badger Silver Inc., 15.7% of Precipitate Gold Corp. and 17.2% of Silver Range Resources Ltd. All these companies are well funded and are engaged in promising exploration projects. Strategic also owns 15 million shares and 5 million warrants of Terra CO₂ Technologies Holdings Inc., a private Delaware corporation which recently completed another large financing to advance its environmentally friendly, cost-effective alternative to Portland cement.

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:

Corporate Information
Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
Tel: (604) 688-2568

Investor Inquiries
Richard Drechsler
V.P. Communications
Tel: (604) 687-2522
NA Toll-Free: (888) 688-2522
rdrechsler@strategicmetalsltd.com
http://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.

SOURCE: Strategic Metals Ltd.

View source version on accesswire.com:
https://www.accesswire.com/735627/Strategic-Metals-Announces-Alotta-Property-Option

FAQ

What is the agreement between Strategic Metals Ltd. and Benjamin Hill Mining Corp. regarding SMDZF?

Strategic Metals Ltd. has entered into a property option agreement with Benjamin Hill Mining Corp. allowing them to acquire a 60% interest in the Alotta project.

What are the key features of the Alotta project related to BNNHF?

The Alotta project hosts a significant un-drilled porphyry prospect with a 4 km by 1 km geochemical anomaly enriched in copper, gold, and molybdenum.

What financial commitments has Benjamin Hill Mining Corp. made for the Alotta project?

Benjamin Hill must make cash payments of $500,000 by January 2028 and incur $11 million in exploration expenditures by the end of 2027.

What is the cash position of Strategic Metals Ltd.?

Strategic Metals Ltd. has a current cash position of approximately $3.6 million.

What future steps are required for the Alotta project to proceed?

An induced polarization survey is needed prior to drill testing for the Alotta project.