Strategic Metals Options Yukon Copper-Gold Projects to GGL Resources Corp.

Rhea-AI Summary

Strategic Metals (OTCQB:SMDZF; TSXV:SMD) has granted GGL Resources a two-stage option to acquire up to a 100% interest in the Hopper, Kluane, Batt and Moraine copper-gold projects in southwestern Yukon.

GGL can earn an initial 70% interest by December 31, 2029 by issuing 1,000,000 post-consolidation GGL shares to Strategic by October 31, 2026 and funding $10 million in exploration, including up to $250,000 reimbursing Strategic’s 2026 work. GGL may then acquire the remaining 30% by paying $3 million on or before the earlier of March 31, 2030 or 90 days after exercising the first option, after which Strategic retains a 2% net smelter return royalty, half of which GGL can buy back for $3 million.

If only the first option is exercised, a 70/30 GGL/Strategic joint venture will be formed. The deal is subject to a 4-for-1 GGL share consolidation, disinterested shareholder approval for both companies, and TSX Venture Exchange acceptance.

Positive

• $10 million exploration funding committed by GGL through 2029
• Receipt of 1,000,000 GGL shares by October 31, 2026
• Potential additional $3 million cash payment under Second Option
• Retained 2% NSR royalty on future production, partial buyback at $3M
• Strategic cash on hand of approximately $5 million
• Equity stakes up to 32% in multiple exploration companies

Negative

• Option agreement contingent on shareholder and TSXV approvals
• Related-party status as Strategic owns 30.35% of GGL
• Potential reduction to minority 30% JV interest if only First Option exercised

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VANCOUVER, BC / ACCESS Newswire / July 27, 2026 / Strategic Metals Ltd. (TSXV:SMD) ("Strategic") announces that it has granted GGL Resources Corp. (TSXV:GGL) ("GGL") a two-staged option to acquire up to a one hundred percent (100%) interest in the Hopper, Kluane, Batt and Moraine mineral properties (the "Properties"), all located in the southwestern Yukon Territory.

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; and

  • $5,000,000 on or before December 31, 2029;

• 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.

This transaction is subject to: (i) GGL completing a share consolidation at a ratio equal to four (4) pre-consolidation common shares for one (1) post-consolidation common share; and (ii) each of GGL and Strategic obtaining shareholder approval and TSX Venture Exchange acceptance of the transaction.

The transaction requires the approval of the disinterested shareholders of each of Strategic and GGL at a special meeting of shareholders as Strategic currently holds 30.35% of the GGL issued share capital and the transaction is a "related party" transaction as defined in Multilateral Instrument 61-101 and the TSX Venture Exchange policies. The special meeting of the shareholders of each company will be held on or before the end of August 2026. There are no finder's fees associated with the option agreement.

Hopper Property

Strategic holds a one hundred percent (100%) interest in the Hopper property, a copper-gold exploration project located in southwestern Yukon. The property is comprised of 365 quartz mining claims and is accessible via a network of existing roads and trails. It is situated approximately 22 km north of the Otter Falls hydroelectric generator and 320 km from the deep-sea port of Haines, Alaska.

The project hosts both copper-gold skarn and porphyry-style mineralization within the Dawson Range Copper-Gold Belt. Exploration programs including geological mapping, soil geochemical surveying, airborne and ground geophysical surveying, trenching and diamond drilling have identified multiple copper-gold targets associated with a large hydrothermal system. A 3,600 m by 1,000 m copper-in-soil anomaly encompasses the principal Copper Castle, Northern Skarn and Hopkins North targets.

The Copper Castle target comprises at least 11 stacked copper-gold skarn horizons that have been partially delineated over approximately 1,200 m of strike length and a vertical extent of 425 m. Drilling confirmed continuity of mineralization along strike and at depth, with intercepts including 1.87% Cu and 1.04 g/t Au over 15.27 m in hole HOP22-03 and 1.41% Cu and 0.53 g/t Au over 22.28 m in hole HOP-21-DDH-01. The skarn system remains open along strike and down dip.

The Northern Skarn target hosts skarn-style mineralization similar to the Copper Castle system but has received only limited exploration.

The Hopkins North target comprises porphyry-style copper-gold-molybdenum mineralization associated with a hydrothermal alteration system measuring approximately 650 m by 2,300 m. The target lies within the Late Cretaceous Hopper Pluton, a granodiorite intrusion emplaced during the same 75 Ma metallogenic episode responsible for the Casino copper-gold porphyry deposit. Diamond drilling intersected broad intervals of copper mineralization, including 0.22% Cu over 114.38 m in hole HOP-21-DDH-06 from surface and 0.17% Cu over 162.85 m in hole DDH-15-05. Despite its size and extent, the target remains largely untested by drilling. For more information, please see the Hopper Property Technical Report filed on SEDAR December 11, 2025, authored by Jean Pautler, P.Geo.

Kluane Property

Subject to a one percent (1%) net smelter return royalty interest held by an arm's length third party, Strategic holds a one hundred percent (100%) interest in the Kluane property, a gold exploration property located 46 km north of Haines Junction, Yukon. The property is comprised of 245 quartz mining claims.

The Kluane property hosts multiple high-grade gold-bearing quartz-carbonate vein systems within metamorphic rocks of the Kluane Schist and associated intrusive rocks of the Ruby Range Suite. Gold occurs as native gold and in association with arsenopyrite. Exploration to date has identified numerous gold-bearing vein zones through prospecting, geochemical surveying, geophysical surveying, trenching and diamond drilling, including the Rikus, Ross, Malou and Delor zones.

Chip sampling from multiple mineralized exposures along a 400 m section of the Rikus Zone returned an average grade of 3.85 g/t Au over 2.76 m, including a best result of 7.36 g/t Au over 9.5 m. Drill intercepts include up to 5.32 g/t Au over 2.75 m. (Rockhaven Resources Ltd. News Release June 17, 2009) Additional soil geochemical and geophysical anomalies remain only partially tested.

Batt Property

Strategic holds a one hundred percent (100%) interest in the Batt property, a copper-cobalt-gold exploration project located 68 km south of Haines Junction, Yukon. The property is comprised of 52 quartz mining claims and encompasses prospective volcanic and sedimentary rocks of the Wrangellia Terrane that hosts volcanogenic massive sulphide (VMS) and structurally controlled mineralization.

Exploration to date has identified multiple mineralized zones through geological mapping, prospecting, geochemical surveying and trenching. Trench and surface sample results include 0.71% Cu, 0.21% Co and 1.18 g/t Au over 5.7 m; 8.72% Cu, 0.05% Co and 19.9 g/t Ag over 1.0 m; and 2.18% Co with 2.37 g/t Au over 0.5 m (Strategic News Release November 30, 2022). Soil geochemical surveys have also outlined several untested multi-element anomalies across the Batt property.

Moraine Property

Strategic holds a one hundred percent (100%) interest in the Moraine property, a copper-gold-silver-molybdenum-tungsten exploration property located 90 km west-northwest of Whitehorse, Yukon. The property is comprised of 102 quartz mining claims within the Dawson Range Gold Belt and hosts skarn and vein-style mineralization with the potential for an associated porphyry system.

Exploration to date has identified two copper-gold-silver skarn zones and a nearby gold-bearing quartz vein through geological mapping, geochemical surveying and trenching. Reported results include up to 2.1 g/t Au, 425 g/t Ag and 7.22% Cu from the South Skarn, and 13.7 g/t Au from quartz vein float (Assessment Report describing Prospecting and Geochemical Sampling at the Hooch Property, H. Smith, December 2011). Geophysical surveys and soil geochemical sampling have also outlined numerous untested anomalies across the property.

Technical information in this news release has been approved by Jackson Morton, P.Geo., the Strategic Vice President of Exploration and a qualified person as defined in National Instrument 43-101.

About Strategic Metals Ltd.

Strategic is a project generator with 16 royalty interests, 14 projects under option to others, and a portfolio of approximately 80 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 4.3% of Trifecta Gold Ltd. All these companies are engaged in promising exploration projects. Strategic also owns 15 million shares of Terra CO2 Technologies Holdings Inc. ("Terra"), 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
https://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

What did Strategic Metals (SMDZF) announce about its Yukon copper-gold projects with GGL Resources?

Strategic Metals granted GGL Resources a two-stage option to earn up to 100% in four Yukon projects. According to Strategic Metals, GGL must issue shares, fund $10 million in exploration, and potentially pay $3 million while Strategic retains a net smelter royalty.

What are the key financial terms of the GGL option deal for Strategic Metals (SMDZF)?

GGL can earn 70% by issuing 1,000,000 post-consolidation shares and funding $10 million exploration. According to Strategic Metals, GGL may earn 100% by paying an additional $3 million, while Strategic retains a 2% net smelter return royalty, half purchasable for $3 million.

What approvals are required for the Strategic Metals (SMDZF) and GGL Resources Yukon option agreement?

The option deal requires disinterested shareholder approval at both companies and TSX Venture Exchange acceptance. According to Strategic Metals, GGL must also complete a 4-for-1 share consolidation, with special shareholder meetings planned on or before the end of August 2026.

How does the joint venture structure work if only the first option is exercised in the SMDZF-GGL deal?

If GGL exercises only the first option, the parties will form a 70/30 joint venture. According to Strategic Metals, GGL would hold 70% and Strategic 30%, jointly exploring and potentially developing the Hopper, Kluane, Batt and Moraine properties in Yukon.

What royalty interest does Strategic Metals (SMDZF) retain under the Yukon option agreement with GGL?

If GGL completes the second option, Strategic will retain a 2% net smelter return royalty. According to Strategic Metals, GGL may purchase half of this royalty, reducing it to 1%, by paying $3 million before commercial production begins on any of the properties.

Which Yukon properties are included in the Strategic Metals (SMDZF) option agreement with GGL Resources?

The agreement covers the Hopper, Kluane, Batt and Moraine mineral properties in southwestern Yukon. According to Strategic Metals, these projects host copper-gold, gold, copper-cobalt-gold, and polymetallic mineralization with multiple defined targets and untested geochemical and geophysical anomalies.

What is the current financial and project portfolio position of Strategic Metals (SMDZF)?

Strategic reports cash of about $5 million and large stakes in several explorers. According to Strategic Metals, it holds 16 royalties, 14 optioned projects, around 80 wholly owned projects, and significant shareholdings in companies such as Broden Mining, GGL, Rockhaven, Silver Range and Terra CO2.