Stronghold Metals Inc.

Stronghold Metals Inc.

June 17, 2010 16:51 ET

Stronghold Announces Closing of Acquisition of Mineracao Vale do Sonho Ltda.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 17, 2010) - STRONGHOLD METALS INC. ("Stronghold" or the "Company") (TSX VENTURE:Z) Further to the Company's news release of May 26, 2010, the Company announces that it has acquired Mineração Vale do Sonho Ltda. ("Do Sonho") by purchasing all of the issued and outstanding quotas of Do Sonho (the "Do Sonho Quotas") from the Do Sonho quotaholders (the "Do Sonho Quotaholders"). In exchange for the Do Sonho Quotas, Stronghold has issued 1,500,000 common shares in the capital of Stronghold and 750,000 non transferable share purchase warrants (the "Warrants") to the Do Sonho Quotaholders. Each Warrant will entitle the warrant holder to acquire an additional common share in the capital of Stronghold at a price of $0.75 per common share until June 16, 2012. The Stronghold shares and Warrants issued to the Do Sonho Quotaholders are subject to a four month and one day hold period expiring October 17, 2010.

Do Sonho is a private Brazilian company which holds title to 5 mineral concessions and is in the process of being transferred title to one additional mineral concession. These 6 concessions make up the Tucumã Property. The Tucumã Property comprises of a total of 11,500 hectares and is located in the State of Para, Brazil.

On the commencement of commercial production for primary ore (excluding alluvial minerals) from the Tucumã Property, Stronghold will pay the aggregate sum of US$3,000,000 to Do Sonho Quotaholders on a pro rata basis to their quotaholdings in Do Sonho and reserve a 1% Net Smelter Return royalty ("Royalty") to the Do Sonho Quotaholders on a pro rata basis.

Yannis Tsitos, President and CEO of Stronghold stated: "We are very pleased to complete our acquisition of Do Sonho. Historical geological, geophysical and geochemical data inclusive of historical scouting drilling results from the Tucuma Property, indicate that high quality gold and copper-gold targets exist untested or partly tested within the Do Sonho held concessions. Stronghold has already commenced preparation for the upcoming drill program. We will provide further details on this first phase planned drill program shortly."

On behalf of The Board of Directors of Stronghold Metals Inc.

"Ioannis (Yannis) Tsitos"
President, CEO & Director

This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the corporations control which may cause actual results, performance or achievements of the corporation's to be materially different from the results, performance or expectation implied by these forward looking statements.

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.

Contact Information

  • Stronghold Metals Inc.
    Ioannis (Yannis) Tsitos
    President, CEO & Director
    +1.604.806.0956 (FAX)