VANCOUVER, BC--(Marketwired - September 27, 2016) - Strategic Metals Ltd. (TSX VENTURE: SMD) ("Strategic") announces that it has completed the sale of its Sequestration, Mitigation and Remediation Technology ("SMARTs") to its wholly-owned subsidiary, Terra CO2 Technologies Ltd. ("Terra CO2"), as disclosed in Strategic's Management's Discussion and Analysis dated August 29, 2016 and as filed on SEDAR on that date.
Since 2013, Strategic has been working on a carbon dioxide (CO2) conversion and mine waste remediation research project. Work to date has been carried out at the University of British Columbia ("UBC") and has been under the direction of Dr. Lee Groat, a faculty member at UBC and a Director of Strategic. To date, the process has been in laboratory scale development and is currently best described as being a bench test stage. A limited capability laboratory prototype has successfully demonstrated concept viability. A more advanced prototype has recently been assembled, and is providing data needed to allow the SMARTs process to be integrated into a continuous flow operational unit.
The goal of SMARTs is twofold:
(i) to reduce the levels of heavy metal contamination and mine rock acid drainage present in groundwater at some producing and past producing metal mining operations; and
(ii) to permanently remove CO2 discharged from industrial operations such as hydrocarbon fueled electrical generation plants, large scale heating units or cement furnaces.
In brief, SMARTs operates by mixing pyrite (FeS2) from mine tailings or concentrates with an aqueous brine which is then passed through an electrolytic cell to force the separation of the iron and sulphur in the pyrite. The iron is then reacted with CO2 from flue gases and an iron carbonate mineral called siderite (FeCO3) is produced. Siderite is chemically stable under atmospheric conditions and can be stored as non-reactive treated tailings or used as back fill material in mining operations. The sulphur separated from the iron under the SMARTs process is used to produce sulphuric acid, which is potentially a marketable commercial product.
Patent protection for the initial technology concept has been obtained in both the United States and Canada and is pending in other jurisdictions including Australia, Europe and Japan. The patent is entitled "Processing of Sulphate and/or Sulphide-Rich Waste Using CO2-Enriched Gases to Sequester CO2, Reduce Environmental Impacts Including Acid Mine Drainage, And Produce Valuable Reaction Products".
The purchase price paid by Terra CO2 for the technology was $1,000,000, and was paid by the issuance of 20,000,000 units to Strategic at a deemed price of $0.05 per unit, each unit consisting of one common share in the capital of Terra CO2 and one-half (1/2) of a share purchase warrant, with each whole warrant entitling Strategic to purchase one additional common share in the capital of Terra CO2 at a price of $0.25 for a period expiring on the earlier of:
(i) September 23, 2021; and
(ii) the date Terra CO2 completes an initial public offering of its securities, if applicable.
Current provincial and federal regulations and the financial climate around environmentally clean technological innovation are very favourable for accelerated development of applicable technologies. Terra CO2 has applied for and is preparing applications for several government and private research grants and awards.
Once the technology has advanced to a stage where current facilities and researchers at UBC are no longer optimal, Terra CO2 will engage commercial researchers and fabricators with experience in the field to further develop the technology.
About Strategic Metals Ltd.
Strategic is a project generator and the largest claim holder in Yukon, which the Fraser Institute recently rated as the best jurisdiction in Canada for mineral potential. Strategic's portfolio of more than 100 projects is the result of 50 years of focussed exploration and research by a team with a track record of major discoveries. Current projects available for option, joint venture or sale include drill-confirmed prospects and drill-ready targets with high-grade surface showings, geochemical anomalies and geophysical features similar to those at nearby deposits.
Strategic has a current cash position of over $20 million and significant shareholdings in a number of active mineral exploration companies including 41.4% of Rockhaven Resources Ltd., 8.3% of ATAC Resources Ltd., 23.4% of Precipitate Gold Corp. and 16.5% of Silver Range Resources Ltd.
If you have any questions concerning Strategic or its properties, please contact Richard Drechsler.
ON BEHALF OF THE BOARD
"W. Douglas Eaton"
President and Chief Executive Officer
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This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.