Just a Refresher Canada Strategic Metals to Acquire up to 70% of Sakami Project
Montreal, Quebec - August 19, 2013 - Canada Strategic Metals Inc. ("Canada Strategic Metals" or "the Company") (TSX.V: CJC; FSE: YXEN; OTC-BB: CJCFF) is pleased to announce that it has signed an option agreement with Matamec Explorations Inc. (TSX-V: MAT, OTC-QX: MHREF) to acquire an interest of up to 70% in the Sakami project, located in the James Bay region of northern Quebec, approximately 570 kilometers north of Val-d'Or and 900 kilometers north northwest of Montreal. The property consists of a total of 120 mineral claims covering 6,032.18 hectares.
The property straddles the structural contact between the Opinaca and La Grande sub-provinces of the Archean-age Superior structural province. This is a major structural corridor that occurs on surface as a 100-kilometer long "S" shaped feature trending northeast to southwest. The Sakami property covers approximately 13 kilometers of this structure, which is up to 500 meters wide on the property. Several gold bearing zones have been discovered on the property within or near this structural zone.
Jean-Sebastien Lavallee, President of Canada Strategic Metals, stated that: "Canada Strategic Metals has been looking for an opportunity to acquire a project with strong historical results. The Sakami property meets this criteria. It is in a highly prospective geological area with the known gold mineralized trend that hosts the multimillion-ounce Eleonore discovery own by Goldcorp, along with other deposits such as La Grand Sud and the Orfee deposit owned by Virginia Mines. I believe the acquisition of of the Sakami project will be a turning point for Canada Strategic Metals future growth."
"Matamec is pleased to partner with Canada Strategic Metals in advancing the exploration of the Sakami gold project," said Andre Gauthier, President and CEO of Matamec Explorations Inc. "The location of Sakami up north in Quebec is a strong potential for exploration of gold as evidenced by past drilling campaigns."
Canada Strategic Metals can acquire a 50% interest by issuing common shares and carrying out exploration as follows:
|
Number of shares |
Exploration work |
|
|
|
| I. Signature of a formal agreement |
500,000 |
-- |
| II. On the First Anniversary |
500,000 |
$500,000 |
| III. On the Second Anniversary |
500,000 |
$750,000 |
| IV. On the Third Anniversary |
500,000 |
$1,000,000 |
| TOTAL |
2,000,000 |
$2,250,000 |
A minimum of $500,000 must be spent on exploration before the first anniversary of the agreement. In the event that Canada Strategic Metals renounces its option, the unspent portion of the $500,000 minimum in exploration expenses shall be paid in cash or in shares, at the sole discretion of Canada Strategic Metals.
Canada Strategic Metals will have acquired an interest of 50% in Sakami after issuing a total of 2,000,000 common shares and carrying out exploration in the amount of $2,250,000 before August 16, 2016.
Once Canada Strategic Metals has earned a 50% interest, the parties will form a full joint venture and will enter into a formal agreement with the standard clauses.
The property is subject to a 1% Net Smelter Return royalty on certain claims.
Within 180 days of acquiring its 50% interest in the property, Canada Strategic Metals will have an option to acquire an additional 20% property interest by issuing 1 million shares to Matamec and completing an independent bankable feasibility study within five years of the date of the share issuance. During the period that the additional option is valid, Canada Strategic Metals must spend a minimum of $2,000,000 on exploration by the end of each year until the feasibility study is completed.
Jean-Sebastien Lavallée (OGQ #773), geologist, shareholder and President and Chief Executive Officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
About Matamec Explorations
Matamec Explorations Inc. is a mining exploration company whose focus is developing the Kipawa HREE deposit with TRECan, with the goal of supplying Toyota with HREEs for the production of hybrid and electric cars. The company is exploring 35km of strike length in the Kipawa ... read more Alkalic complex for rare earths-yttrium-zirconium-niobium-tantalum mineralization on its Zeus property. Matamec is also exploring for gold at its Matheson joint-venture property, which is located along strike and in close proximity to the Hoyle Pond mine in Timmins, Ontario. In Quebec, the company is exploring for lithium and tantalum on its Tansim property and for precious and base metals on its Sakami, Valmont and Vulcain properties. For more information, please visit www.matamec.com.
About Canada Strategic Metals
Canada Strategic Metals is an emerging growth company focused on the exploration and development of its early stage projects covering over 60,000 hectares throughout Quebec. With management experience in green technology, and junior resource exploration and development, Canada Strategic Metals is well positioned to aggressively advance this promising portfolio for its shareholders. For more information on the Company, please visit www.csmetals.ca
Jean-Sébastien Lavallée, P. Geo
President & Chief Executive Officer
819-354-5146
Paradox Public Relations
514-341-0408
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) responsibility for the adequacy or accuracy of this release.
- See more at: https://www.canadastrategicmetals.com/en/investors/news-releases/canada-strategic-metals-and-matamec-announce-agreement-for-sakami-gold-project#sthash.BUOMiJZL.dpuf