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Strategic Metals Ltd. Closes Initial Tranche of Private Placement

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Not for dissemination or distribution in the United States and not for distribution to United States newswire services

VANCOUVER, BC / ACCESSWIRE / July 8, 2020 / Strategic Metals Ltd. (TSXV:SMD) ("Strategic" or the "Company") announces the closing of the initial tranche of the brokered private placement (the "Offering") co-led by Agentis Capital Markets Canada Limited Partnership and Haywood Securities Inc. (collectively, the "Agents") as announced on June 18, 2020. The initial tranche consisted of the sale of:

(a) 4,916,406 flow-through units (the "FT Units") at a price of $0.64 each, each consisting of one flow-through common share and one common share purchase warrant (a "Warrant"), for gross proceeds of $3,146,499.84; and

(b) 2,230,000 units (the "Units") at a price of $0.45 each, each consisting of one common share and one Warrant, for gross proceeds of $1,003,500.

Each Warrant entitles the holder to purchase one common share at a price of $0.65 until July 8, 2022.

The net proceeds from the Offering will be used primarily to fund exploration activities and for general corporate and working capital purposes. The gross proceeds raised from the sale of the 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 December 31, 2020.

The Company paid a cash commission equal to 6% of the gross proceeds from the Offering to the Agents and will issue Compensation Warrants to the Agents on the closing of the second tranche equal to 6% of the total number of FT Units and Units sold under the initial and second tranches. Each Compensation Warrant will be exercisable or deemed exercisable to acquire one Unit at a price of $0.45 for a period of 24 months from the closing of the second tranche.

All securities issued pursuant to the closing of the initial tranche, including any common shares that may be issued pursuant to the exercise of the Warrants, will be subject to a hold period in Canada until November 9, 2020.

The Company and the Agents anticipate the closing of the second tranche pursuant to the Offering on or about July 15, 2020.

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 track record of major discoveries. Current projects include more than 80 properties where precious metals are a major component. Projects available for option, joint venture or sale include drill-confirmed prospects and drill-ready targets with high-grade surface showings, geochemical anomalies and geophysical features that resemble those at nearby deposits.

Strategic has a current cash position of over $10.5 million and large shareholdings in a number of active mineral exploration companies including 46.3% of GGL Resources Corp., 36.3% of Rockhaven Resources Ltd., 19.9% of Precipitate Gold Corp., 18.7% of Silver Range Resources Ltd., 9.9% of Trifecta Gold Ltd., and 6.1% of ATAC Resources Ltd. Strategic also holds a 53.5% interest in Terra CO2 Technologies Holdings, Inc. a private Delaware corporation which is developing an environmentally-friendly, cost-effective alternative to Portland cement.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.

ON BEHALF OF THE BOARD

"W. Douglas Eaton"

President and Chief Executive Officer

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/596752/Strategic-Metals-Ltd-Closes-Initial-Tranche-of-Private-Placement

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