Jul 25 2015
Strongbow Exploration Inc. is pleased to announce that, further to its news releases of March 10, 2015, March 12, 2015 and June 22, 2015, it has received all required approvals for, and closed both its acquisition of the Sleitat and Coal Creek tin properties in Alaska (the "Properties") as well as a $1,000,000 non-brokered private placement financing.
Strongbow has acquired the Properties subject to the terms of a property purchase agreement (the "Agreement") with Osisko Gold Royalties Ltd ("Osisko") and Mr. R. Netolitzky, and their respective wholly-owned companies, Brett Alaska Resources Inc. ("Brett") and Thor Gold Alaska, Inc. ("Thor"). Thor held a 20% undivided interest in the Sleitat property and Brett held an 80% undivided interest in the Sleitat property and a 100% interest in the Coal Creek property. Mr. Netolitzky is a director of Strongbow and is therefore non-arm's length to Strongbow. Strongbow has acquired the Properties for total consideration of 6,500,000 common shares of Strongbow allocated as to 5,000,000 common shares to Brett and 1,500,000 common shares to Thor, and a 2% NSR royalty on the Properties. The NSR royalty will be allocated as to 1.75% to Brett and 0.25% to Thor. In addition to the shares and the NSR royalty, Strongbow has granted Osisko a first right of refusal on the sale of any future royalties on any of its properties.
Concurrent with the closing of the acquisition of the Properties, Strongbow has also issued 10,000,000 Units at a price of $0.10 per Unit for gross proceeds of $1,000,000. Each Unit consists of one common share and one half of one common share purchase warrant. Each full warrant will allow the holder to purchase one share of Strongbow at a price of $0.20 for a period of 24 months from the date of closing. The common shares issued as part of this private placement and any common shares issued upon exercise of the warrants are subject to a four month hold period which expires November 25, 2015. As part of the private placement, Strongbow paid cash finders' fees totalling $19,500. Insiders of the Company participated in this private placement, including a $200,000 subscription by Osisko.
Closing of the acquisition of the Properties and the private placement financing has resulted in Osisko and Brett holding together 7,000,000 shares of Strongbow or 27.3% of the post-closing issued shares of the Company. As a result, Osisko is now considered a 'control person' as defined by the TSX Venture Exchange policies.
Qualified Person
Kenneth Armstrong, P.Geo. (ON), president, CEO and director of Strongbow and a Qualified Person under National Instrument 43-101, has reviewed and approved the contents of this news release.
STRONGBOW EXPLORATION INC.
Kenneth A. Armstrong, President and CEO
Source: http://www.strongbowexploration.com/