Mining News: News Nuggets: Strongbow closes Alaska tin projects buy

Strongbow Exploration Inc. July 24 said it has closed its acquisition of the Sleitat and Coal Creek tin properties in Alaska as well as a C$1 million non-brokered private placement financing. Strongbow acquired the tin properties, from Osisko Gold Royalties Ltd. and Strongbow Director Ronald Netolitzky. Netolitzky has been involved with Thor Gold, a former subsidiary of Solomon Resources Ltd., since the 1980s. Osisko acquired an interest in the Sleitat and Coal Creek properties through the 2010 purchase of Brett Resources Inc., a former explorer of the two Alaska tin projects. Thor held a 20 percent undivided interest in the Sleitat property and Brett held the remaining 80 percent undivided interest in Sleitat and a 100 percent interest in the Coal Creek property. Strongbow issued 5 million shares to Brett and 1.5 million shares to Thor. Additionally, Brett was granted a 1.75 percent net smelter return royalty, and Thor will receive a 0.25 percent NSR on the properties. Strongbow also 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 Alaska tin properties, Strongbow raised C$1 million by issuing 10 million units at C10 cents per unit. Each unit consists of one common share and one half of one purchase warrant, which allows the holder to purchase one share of Strongbow at a price of C20 for two years. Strongbow paid cash C$19,500 in finders’ fees associated with the private placement. Strongbow insiders participated in the financing, including a C$200,000 subscription by Osisko. Together, Osisko and Brett hold 7 million Strongbow shares, or 27.3 percent of the post-closing issued shares of the company.

- Shane Lasley