It started, Q the epic music Vancouver, B.C. – June 4, 2020 - Strategic Metals Ltd. (TSX-V: SMD) (“Strategic”) is pleased to announce the signing of a farm-out agreement with CMC Metals Ltd. (“CMC”) relating to its Blue Heaven silver project.
Strategic has granted CMC a two staged option to acquire up to a 100% interest in the Blue Heaven silver project (the “Property”), located adjacent to CMC’s Silver Hart Deposit and about 50 km north of Coeur Mining’s Silver Tip Mine. The Blue Heaven is one of several high grade silver projects held by Strategic that host mineralization grading in excess of 1,000 g/t silver.
Under the first option CMC can earn an 80% interest by making staged payments to Strategic totalling $400,000 by June 1, 2024. Following the exercise of the first option, Strategic will retain a 10% net smelter return royalty interest (“NSR”) from all high grade mining and a 2% NSR from all commercial scale mining. Upon exercising the first option, CMC will have a second option to earn an additional 20% interest in the Property by paying Strategic an additional $500,000 within 180 days of the exercise of the first option