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Enter Symbol
or Name
USA
CA



Canada Strategic Metals Inc
Symbol CJC
Shares Issued 75,039,155
Close 2016-05-16 C$ 0.075
Market Cap C$ 5,627,937
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Cda Strategic, Lomiko Metals sign another option deal

2016-05-16 11:14 ET - News Release

Also News Release (C-LMR) Lomiko Metals Inc

Mr. Jean-Sebastien Lavallee of Canada Strategic reports

STRATEGIC METALS MONETIZES GRAPHITE ASSET

Canada Strategic Metals Inc. and Lomiko Metals Inc. have signed an additional option agreement on the La Loutre and Lac des Iles properties, allowing Lomiko to acquire up to 100-per-cent interest in the project.

"The properties are located close to the Imerys carbon and graphite mine, and benefits from similar infrastructure advantages and similar flake graphite grade, deposit size and near-surface mineralization amenable to low-cost, small-footprint extraction. All of these elements make this an excellent candidate for a positive preeconomic assessment," stated A. Paul Gill, chief executive officer of Lomiko Metals. "Additional resource definition in the Refractory zone will bolster the PEA."

Subject to Lomiko having exercised the additional option signed on Feb. 6, 2015, Canada Strategic will also grant to Lomiko the exclusive right and option to increase its undivided interest in and to the La Loutre property and the Lac des Iles property from 80 per cent to 100 per cent by paying to Canada Strategic an additional amount of $10,000, by issuing to Canada Strategic an additional 7.5 million common shares of Lomiko and by financing exploration expenditures for an additional amount of $1,125,000 on Canada Strategic properties for a period commencing on the deemed exercise of the additional option and ending on Dec. 31, 2018. Previous to this option, Lomiko owned 40 per cent of the La Loutre and Lac des Iles properties, and had an option to increase ownership to 80 per cent based on completing work and issuing shares.

The La Loutre property consists of contiguous claim blocks totalling approximately 2,867.29 hectares (28.67 square kilometres) situated approximately 53 kilometres east of the Imerys carbon and graphite mine, formerly known as the Timcal graphite mine, North America's only operating graphite mine, and 117 kilometres northwest of the international port of Montreal, key to shipping to North America and Europe. The Lac des Iles property is directly west of the Imerys graphite mine. Lomiko is currently completing the second option to acquire 80 per cent of the La Loutre and Lac des Iles properties which requires $580,000 in work expenditures between the La Loutre property and other Canada Strategic properties.

The La Loutre resource is constrained within a drilled area of approximately 900 metres along the N150-degree striking trend of the graphitic paragneiss, 250 metres across the strike and 225 metres below surface. Geological interpretation and estimation were based on 62 NQ drill holes (totalling 8,193.3 metres) drilled by Lomiko and Canada Strategic Metals in 2014 and 2015.

On Feb. 9, 2016, Lomiko Metals and Canada Strategic announced resource for the La Loutre flake graphite property of 18.4 million tonnes of 3.19 per cent indicated and 16.7 million tonnes at 3.75 per cent flake graphite inferred with a cut-off of 1.5 per cent. The sensitivity table also features 4.1 million tonnes of 6.5 per cent indicated and 6.2 million tonnes at 6.1 per cent flake graphite inferred with a cut-off of 3 per cent. The resource is calculated on the Graphene-Battery zone only, and does not include recent high-grade intercepts of 28.5 metres of 16.53 per cent Cg and 21.5 metres of 11.53 per cent Cg reported on Jan. 6, 2016, and 9 per cent over 90.75 metres reported on Sept. 24, 2015, from the Refractory zone.

Qualified persons

Jean-Sebastien Lavallee (OGQ No. 773), geologist, a shareholder of both companies, president and chief executive officer of the Canada Strategic, and a qualified person under National Instrument 43-101, has reviewed and approved the technical content of this release.

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