15:22:57 EDT Fri 07 Aug 2020
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Strategic Metals Ltd
Symbol SMD
Shares Issued 96,645,967
Close 2020-06-17 C$ 0.48
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Strategic Metals arranges $4-million private placement

2020-06-18 09:27 ET - News Release

Mr. Douglas Eaton reports


Strategic Metals Ltd. has arranged a brokered private placement, to be co-led by Agentis Capital Markets Canada Ltd. and Haywood Securities Inc., on a commercially reasonable efforts basis, to raise gross proceeds of up to $4-million, consisting of up to $1-million of units of the company at a price of 45 cents per unit and up to $3-million of flow-through units of the company at a price of 64 cents per FT unit. Each unit comprises one common share in the authorized share structure of the company and one common share purchase warrant. Each FT unit comprises one common share that will qualify as a flow-through share (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)) and one warrant.

Each warrant will entitle the holder to purchase one common share at an exercise price of 65 cents for 24 months following closing of the offering.

The company has granted the agents an option to increase the size of the offering by up to 25 per cent. The agents' option may be exercised in whole or in part by the agents up to two days prior to the closing of the offering.

The net proceeds from the offering will be used primarily to finance exploration activities and for general corporate and working capital purposes. The gross proceeds raised from the issuance of FT units will be used for Canadian exploration expenses and will qualify as flow-through mining expenditures as defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT units with an effective date no later than Dec. 31, 2020, in an aggregate amount not less than the gross proceeds raised from the issuance of the FT units.

The company will pay a commission to the agents of 6 per cent of the gross proceeds of the offering (including from any exercise of the agents' option). The company has also agreed to issue to the agents non-transferable warrants equal in number to 6 per cent of the aggregate number of offered securities issued. Each broker warrant shall be exercisable or deemed exercisable to acquire one unit at a price equal to the unit price for a period of 24 months from the closing date of the offering.

The offering is scheduled to close on or about July 8, 2020, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals of the TSX Venture Exchange.

All offered securities issued pursuant to the offering, including any common shares that may be issued pursuant to the exercise of the warrants, will be subject to a hold period in Canada of four months and one day from the closing date of the offering.

About Strategic Metals Ltd.

Strategic is a project generator with a portfolio of more than 130 projects that are the product of over 50 years of focussed exploration and research by a team with a record of major discoveries.

We seek Safe Harbor.

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