Strategic Metals and GGL Resources Property Transaction Approved

The option terms provide for GGL-funded exploration and share consideration, with a royalty retained if GGL acquires full ownership.

Rhea-AI Summary

Strategic Metals (SMDZF) received final TSX Venture Exchange acceptance for its Yukon copper-gold property transaction with GGL Resources.

GGL can earn 70% of Hopper, Kluane, Batt and Moraine by issuing 1,000,000 post-consolidation shares to Strategic by October 31, 2026, and spending $10,000,000 on exploration by December 31, 2029. Spending includes reimbursement to Strategic of up to $250,000 for 2026 exploration. GGL completed a four-for-one share consolidation.

GGL can acquire the remaining 30% for $3,000,000 by the earlier of March 31, 2030, or 90 days after exercising the first option. Strategic would retain a 2% net smelter return royalty, a share of future production proceeds; GGL could buy half for $3,000,000 before commercial production begins. If only the first option is exercised, the parties will form a 70/30 joint venture. Disinterested shareholders of both companies approved the related-party transaction on August 31, 2026.

6 points · 1 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.$10,000,000 exploration requirement funds work on the properties by December 31, 2029, under the first option. 46% of market cap
• Moderate pointFinal Exchange acceptance obtained following both companies’ disinterested shareholder approvals on August 31, 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.$3,000,000 additional payment to Strategic required if GGL exercises its option for the remaining 30%. 14% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.1,000,000 post-consolidation GGL shares due to Strategic by October 31, 2026, under the first option.
• Minor point. Forward-looking: it has not happened yet and may not happen.Up to $250,000 reimbursement to Strategic for 2026 exploration is included in the initial expenditure requirement.
• Minor point. Forward-looking: it has not happened yet and may not happen.2% net smelter return royalty retained by Strategic following exercise of the second option.

Negative

• Moderate pointOption-dependent consideration leaves GGL’s acquisition of up to 100% contingent on meeting the stated exercise terms.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Half of Strategic’s royalty can be purchased by GGL for $3,000,000 before commercial production begins. 14% of market cap

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VANCOUVER, BC / ACCESS Newswire / October 20, 2026 / Strategic Metals Ltd. (TSXV:SMD) ("Strategic") announces that it has received final TSX Venture Exchange (the "Exchange") acceptance of the Yukon copper-gold properties transaction with GGL Resources Corp. ("GGL"). The property transaction was announced on July 27, 2026, and required the approval of the disinterested shareholders of both Strategic and GGL as the transaction was considered a "related party" transaction as defined in Multilateral Instrument 61-101 and the Exchange policies. Disinterested Strategic and GGL shareholder approvals were obtained on August 31, 2026.

As part of its Exchange acceptance, GGL has completed a share consolidation at a ratio equal to four (4) pre-consolidation GGL common shares for one (1) post-consolidation GGL common share.

Under the terms of the property transaction, GGL has the right to acquire up to 100% interest in the Hopper, Kluane, Batt and Moraine mineral properties in southwest Yukon Territory (the "Properties"). GGL can earn an initial seventy percent (70%) interest in the Properties by completing all of the following by December 31, 2029 (the "First Option"):

• issuing 1,000,000 post-consolidation GGL shares to Strategic on or before October 31, 2026;
• incurring $10,000,000 in exploration expenditures on the Properties as follows:
  • $2,000,000 on or before December 31, 2027;
  • $3,000,000 on or before December 31. 2028;
  • $5,000,000 on or before December 31, 2029; and
• included in the initial $2,000,000 exploration expenditure requirement is the reimbursement of Strategic of up to $250,000 related to a 2026 exploration program on the Properties.

GGL can acquire an additional thirty percent (30%) interest in the Properties for a total interest of one hundred percent (100%) by making an additional payment to Strategic of $3,000,000 on or before the earlier of: (i) March 31, 2030; and (ii) 90 days following the exercise of the First Option (the "Second Option").

Following the exercise of the Second Option, Strategic will retain a two percent (2%) net smelter return royalty interest in all future commercial production of all commodities from the Properties. GGL will have the right to purchase one-half (1/2) of the Strategic royalty interest for $3,000,000 at any time prior to the commencement of commercial production from any of the Properties.

If GGL elects to exercise the First Option only, GGL and Strategic will form a 70/30 joint venture to explore and develop the Properties.

About Strategic Metals Ltd.

Strategic is a project generator with 28 royalty interests, 8 projects under option to others, and a portfolio of approximately 70 wholly owned projects that are the product of over 50 years of focussed exploration and research by a team with a track record of major discoveries. Projects available for option, joint venture or sale include drill-confirmed prospects and drill-ready targets with high-grade surface showings and/or geochemical anomalies and geophysical features that resemble those at nearby deposits.

Strategic has a current cash position of approximately $5 million and large shareholdings in several active mineral exploration companies including 32% of Broden Mining Ltd., 30.4% of GGL Resources Corp., 28% of Rockhaven Resources Ltd., 15.5% of Silver Range Resources Ltd. and 13.23% of Trifecta Gold Ltd. Strategic also owns 15 million shares of Terra CO2 Technologies Holdings Inc., a private Delaware corporation developing a cost-effective alternative to Portland cement, which recently broke ground on its first low-carbon cementitious materials facility in Cleburne, Texas following the closing of a US$124.5M financing.

On Behalf of the Board

"W. Douglas Eaton"

President and Chief Executive Officer

For further information concerning Strategic or its various exploration projects please visit our website at www.strategicmetalsltd.com or contact:

Corporate Information
Strategic Metals Ltd.
W. Douglas Eaton
President and C.E.O.
Tel: (604) 688-2568

Investor Inquiries
Richard Drechsler
V.P. Communications
Tel: (604) 687-2522
NA Toll-Free: (888) 688-2522
rdrechsler@strategicmetalsltd.com
http://www.strategicmetalsltd.com

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.

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.

SOURCE: Strategic Metals Ltd.

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What can GGL acquire under the Strategic Metals Yukon property transaction?

GGL can acquire up to 100% of the Hopper, Kluane, Batt and Moraine properties through two options. The first earns 70% through share issuance and exploration spending; the second adds 30% for $3,000,000. If GGL exercises only the first option, it and Strategic will form a 70/30 joint venture.

What is GGL’s exploration spending schedule under the Strategic Metals property option?

GGL must incur $2,000,000 by December 31, 2027, $3,000,000 by December 31, 2028, and $5,000,000 by December 31, 2029. The initial $2,000,000 requirement includes reimbursement to Strategic of up to $250,000 related to a 2026 exploration program on the properties.