MONTREAL, QUEBEC--(Marketwired - June 27, 2013) - Canada Strategic Metals Inc. ("Canada Strategic Metals" or "the Company") (TSX VENTURE:CJC)(FRANKFURT:YXEN)(OTCBB:CJCFF) today announced that, subject to the approval of the TSX Venture Exchange ("TSXV"), it intends to settle $487,310.10 in outstanding indebtedness through the issuance to a series of creditors of an aggregate of 9,746,202 common shares at a price of $ 0.05 per share (the "Debt Settlement"). Of this amount, a total of $81,200 represents indebtedness owed to a Director and to a service provider of the Company in which a Director and Officer of the Company is an officer and shareholder. The shares issued under the Debt Settlement will be subject to a hold period of four months and one day from the date of issuance.
The Company also announces that it has negotiated a series of amendments (the "Amendments") to outstanding property option agreements (the "Option Agreements") between the Company and 3 individual optionors (the "Optionors"), one of which is Mr. Jean-Sébastien Lavallée, President, Director and shareholder of the Company, as follows:
| (i) | Option Agreement dated April 17, 2012, as amended on July 18, 2012 and on August 29, 2012 regarding the Company's Champagne property in Quebec: The payment of $60,000 originally due within 6 months from the TSXV approval, has now been cancelled and in lieu thereof, the Company has now agreed to issue to the Optionors 1,200,000 shares on or before that day which is 3 months from the date TSXV approval is received (which approval was obtained on March 27, 2013). All other terms of the agreement remain unchanged. |
| (ii) | Option Agreement dated July 18, 2012 as amended on August 29, 2012, regarding the Company's North Shore Package properties in Quebec: The payment of $30,000 originally due upon execution of the agreement and the $45,000 due within 6 months from the TSXV approval, has now been cancelled and in lieu thereof, the Company has now agreed to issue to the Optionors 1,500,000 shares on or before that day which is 3 months from the date TSXV approval is received (which approval was obtained on March 27, 2013). All other terms of the agreement remain unchanged. |
| (iii) | Option Agreement dated February 20, 2012, regarding the Company's La Loutre property in Quebec: The payment of $15,000 originally due on the date which is respectively 6 and 12 months from the date of the TSXV approval (which approval was received on March 16, 2012) has now been cancelled and in lieu thereof, the Company has now agreed to issue to the Optionors 1,100,000 shares on that day which is 12 months from the date TSXV approval is received. Furthermore, the payment of $15,000 which is due on the day which is 18 months from the date TSXV approval is received may now be paid, at the election of the Company, in common shares at a price per share equal to the market price of the Company's shares on the TSXV on the date the amount is payable, subject to the minimum price allowed under the policies of the TSX-V. All other terms of the agreement remain unchanged. |
The foregoing Amendments were approved by the Company's independent Directors and are all subject to the approval of the TSXV. The shares to be issued under the Amendments will be subject to a hold period of four months and one day from the date of issuance.
About Canada Strategic Metals
Canada Strategic Metals is an emerging growth company focused on the exploration and development of its large portfolio of graphite projects covering over 60,000 hectares throughout Quebec. With management experience in green technology, and junior resource exploration and development, Canada Strategic Metals is well positioned to aggressively advance this promising portfolio for our shareholders.
For more information on the Company, please visit www.csmetals.ca .
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) responsibility for the adequacy or accuracy of this release.
