Strategic Resources Inc. (Strategic) has announced the receipt of TSX Venture Exchange approval to and the closing of: (i) its option to acquire up to a 100% interest in the Silasselkä Project owned by Aurion Resources (Aurion), and (ii) its option to acquire up to a 100% interest in the Akanvaara Project owned by Magnus Minerals (Magnus) (the options), which were previously announced on 24 April 2019.
Strategic has also closed the previously announced non-brokered private placement financing of 16.1 million shares (the Common Shares) at a price of CAN$0.23 per share, for aggregate gross proceeds of CAN$3.7 million (the Offering). The use of proceeds will be to fund the cash portion of the options, exploration expenditures, repayment of debt, general corporate purposes and working capital.
The common shares issued in the Offering are subject to a four month hold period. In connection with the Offering, finder's fees of 4% were paid on the proceeds from certain subscribers to Haywood Securities Inc. and PI Financial Corp.
Pursuant to the Options, Strategic has made initial payments by issuing 3 million shares and paying CAN$500 000 to Aurion; and issuing 2.5 million shares and paying CAN$143 750 to Magnus. To maintain the options in good standing, Strategic will undertake at least CAN$1 million of exploration expenditures on Aurion's Silasselkä Project, and CAN$750 000 on Magnus's Akanvaara Project within the next 12 and 24 months respectively. For full details of the three year options, see the company's news release of 24 April 2019. Concurrent with this news release, the company has filed technical reports for each of the Silasselkä Project and the Akanvaara Project on SEDAR (as reviewed by the TSX Venture Exchange), and readers are invited to review each of the reports in full for further details on the two projects.
Post the closing of the Offering and initial Option payments, Aurion and Magnus will own 9.6% and 8.0% of Strategic's outstanding common shares, respectively.
Mark Tommasi, Steven Brassard and Blair McIntyre have stepped down as CEO and Director, CFO, and Director respectively. Scott Hicks and Martin Rip have assumed the roles of CEO & Director and CFO. Leo Hathaway has been appointed as VP Exploration. Lyle Braaten has been appointed as VP Legal and Corporate Secretary. Mark Serdan and Timo Mäki (being representatives of Aurion and Magnus, respectively) have been appointed to the board.
In connection with the Option with Aurion, a finder's fee of 387 000 shares was paid to Medalist Capital Ltd., (reduced from the previously disclosed 400 000 shares). The shares issued to Medalist are subject to a four month hold period.
Strategic has successfully applied for a ticker change and will begin trading on the TSX Venture Exchange under the symbol ‘SR’ commencing on 17 June 2019. Strategic will continue to trade under its existing symbol, ‘STI’ until the close of trading on 14 June 2019.
Read the article online at: https://www.globalminingreview.com/finance-business/11062019/strategic-resources-completes-financing-and-closes-vanadium-project-options/