|By Marketwired .||
|December 5, 2013 01:00 PM EST||
BOUCHERVILLE, QUEBEC -- (Marketwired) -- 12/05/13 -- Strateco Resources Inc. ("Strateco") (TSX: RSC)(FRANKFURT: RF9) announces that it signed a formal agreement today with Canada Strategic Metals Inc. ("Canada Strategic Metals") for the acquisition of the Apple property in the James Bay region of northern Quebec.
The agreement, which is effective immediately, provides for Canada Strategic Metals to acquire 100% of the Apple property, wholly-owned by Strateco, in consideration of $10,000 and 4,000,000 shares of Canada Strategic Metals. The agreement also provides for a 2% NSR royalty payable to Virginia Mines Inc., half of which can be bought back for $1.0 million. The agreement is subject to regulatory approval. The common shares issued to Strateco will be subject to resale restriction periods as follows:
-- 800,000 common shares within four months of TSX-V approval of the Agreement; -- 800,000 common shares within nine months of TSX-V approval of the Agreement; -- 800,000 common shares within 12 months of TSX-V approval of the Agreement; -- 800,000 common shares within 18 months of TSX-V approval of the Agreement; and -- 800,000 common shares within 24 months of TSX-V approval of the Agreement.
The Apple property consists of 147 claims covering 75 squares kilometres located 80 km southeast of Radisson in the James Bay region.
Canada Strategic Metals acquired the Apple property for its gold potential and intends to conduct exploration work in the coming year.
This news release contains "forward-looking statements" subject to certain risks and uncertainties. There can be no assurance that these statements will prove to be correct. Actual results and future events could differ significantly from those implied by such statements. These risks and uncertainties are discussed in Strateco's annual information form filed with the securities commissions of British Colombia, Alberta, Ontario and Quebec.