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Press release from TheNewswire.ca

Canada Strategic Metals Receives Conditional TSX.V Approval for the North Shore and Champagne Graphite Project Acquisitions

Tuesday, September 04, 2012

Canada Strategic Metals Receives Conditional TSX.V Approval for the North Shore and Champagne Graphite Project Acquisitions05:00 EDT Tuesday, September 04, 2012(via Thenewswire.ca) Welcomes Jean Sebastien Lavallee, P.Geo, as President and CEO Vancouver, British Columbia - September 4th, 2012 - Canada Strategic Metals Inc. ("Canada Strategic Metals" or "the Company") (TSX.V: CJC; FSE: YXEN; OTC-BB: CJCFF) is pleased to announce it has received conditional acceptance from the TSX Venture Exchange of the Company's North Shore and Champagne graphite project acquisitions, which increase the Company's total Quebec focused holdings to over 60,000 hectares of graphite prospective lands. In addition, the Company welcomes Mr. Jean Sebastien Lavallee, P.Geo, as the new President and CEO of Canada Strategic Metals. Mr. Lavallee is a Quebec based Professional Geologist and has been active in mining exploration since 1994. He is the vice president of Consul-Teck Exploration Inc., a geological consulting firm headquartered in Val-d'Or that specializes in Quebec mining exploration and development as well as the President and CEO of Critical Elements Corporation (TSX.V: CRE). He has also previously acted as a geologist for many resource companies, including Eloro Resources Ltd., Uracan Resources Ltd., Agnico-Eagle Mines Ltd., Noranda Minerals Inc., Champion Minerals Inc., Matamec Explorations Inc. and Atlanta Gold Inc. Having been responsible for the planning and execution of many exploration programs in recent years, Mr. Lavallee has solid experience in exploration project development and the junior resource markets, with a primary focus on Quebec specifically. Final TSX Venture Exchange acceptance of the Champagne and North Shore transactions are contingent upon the Company filing two National Instrument 43-101 compliant technical reports on the Champagne property and on one of the North Shore property package properties, within 120 days. Further, the North Shore and Champagne option agreement terms announced by the Company on July 19, 2012 have been amended to provide that 50% of the shares originally payable to the optionors upon TSX.V acceptance will be issued based on this conditional acceptance, with the balance of the initial shares payable upon final TSX.V acceptance. The amended terms of the transactions are the following: North Shore Option Agreement Terms In order to exercise its option to acquire a 100% interest in the North Shore properties, the Company is required to: -make the following cash payments: -$30,000 on the date of TSX.V conditional acceptance of the agreement (the "Approval Date") -$45,000 within 6 months of the Approval Date -issue the following common shares: -1,500,000 common shares on the Approval Date -1,500,000 common shares on the date of TSX.V final approval, following the submission of the NI 43-101 compliant technical report -1,500,000 common shares on or before 15 months from the Approval Date -1,500,000 common shares on or before 24 months from the Approval Date; and -complete a minimum of $250,000 in aggregate exploration related expenditures on any of the properties subject to the North Shore Option Agreement and/ or the Champagne graphite properties within 18 months from the Approval Date. In addition, if the Company files a National Instrument 43-101 compliant resource estimate with 200,000 tonnes or more of graphite content (at cut-off of 5%) on any of these properties the Company will make a one-time payment to the Optionors consisting of aggregate consideration of $150,000 and 3,000,000 common shares, provided that this obligation will terminate if a similar bonus payment is made under the Champagne Option Agreement. The Optionors will also collectively maintain a 2% Net Smelter Returns Royalty, of which the Company can buy back 1/2 (1%) for $1,000,000. The Company has also agreed that, during the period which is 24 months from the Approval Date, the Company will retain Consul-Teck Mineral Exploration Consultants, of Val-d'Or, Quebec, a company owned by the Optionors, as the sole operator with respect to the exploration of the properties at commercially acceptable terms. Champagne Option Agreement Terms In order to exercise its option to acquire a 100% interest in the Champagne property, the Company is required to: -make the following cash payments: -$60,000 on signing of the LOI (paid) -$60,000 within 6 months of the date of TSX.V conditional acceptance (the "Approval Date") -$135,000 on or before 15 months from the Approval Date -$135,000 on or before 24 months from the Approval Date -issue the following common shares: -1,500,000 shares on the Approval Date -1,500,000 shares on the date of TSX.V final approval, following the submission of a NI 43-101 compliant technical report -1,500,000 common shares on or before 15 months from the Approval Date -1,500,000 common shares on or before 24 months from the Approval Date; and -complete a minimum of $250,000 in aggregate exploration related expenditures on any of the Champagne properties and/ or the properties subject to the North Shore Option Agreement within 18 months from the Approval Date. In addition, if the Company files a National Instrument 43-101 compliant resource estimate with 200,000 tonnes or more of graphite content (at cut-off of 5%) on any of the Champagne properties the Company will make a one-time payment to the Optionors consisting of aggregate consideration of $150,000 and 3,000,000 common shares, provided that this obligation will terminate if a similar bonus payment is made under the North Shore Agreement. The Optionors will also collectively maintain a 2% Net Smelter Returns Royalty, of which the Company can buy back 1/2 (1%) for $1,000,000. The Company has also agreed that, during the period which is 24 months from the Approval Date, the Company will retain Consul-Teck Mineral Exploration Consultants, of Val-d'Or, Quebec, a company owned by the Optionors, as the sole operator with respect to the exploration of the properties at commercially acceptable terms. A full description of the properties is available on the Company's website at www.canadastrategicmetals.com. Over the past several months, and in spite of difficult overall market conditions, management has successfully worked to advance its existing graphite projects, enhance its graphite focused portfolio, and improve the Company's management team. Mr. Lavallee, P.Geo, brings invaluable technical expertise to the team as well as tremendous experience operating in Quebec. He joins recently appointed, Ron MacDonald, the Company's new Executive Chairman and Director and Mark Baggio, Director, who are both specialists in the overseas green tech markets, specifically in China, Korea, and Japan. These additions complement the Company's assembly of a portfolio that is now among the largest assemblage of graphite focused land holdings in North America. In relation to the overall graphite and green tech markets, the Company believes that much more attention will be given to the space as more detail is revealed relating to China's adoption of a world-leading nationwide sustainable green tech and energy strategy, while at the same time witnessing a depletion of their existing graphite reserves which are critical for the sector. In addition, management foresees a significant advancement in and adoption of green technologies worldwide, specifically in the use of lithium-ion batteries, within which graphite plays a key component. About Graphite Natural graphite comes in several forms: flake, amorphous and lump. Graphite has many important new applications including its use in lithium ion batteries, fuel cells and nuclear and solar power that have the potential to significantly increase the demand for this critical element. For instance, there is between 10 and 30 times more graphite required by weight to produce a lithium-ion battery than there is lithium. In addition, the recent discovery of a new material called graphene, which is actually derived from graphite, has also heightened interest. International research is now underway into a number of its potential applications including enhancing the speed and processing power of many modern electronic devices. This has also increased the interest in graphite. Meanwhile, global consumption of natural graphite has increased from ~600,000 in 2000 to 1.2 MM t in 2012. Demand for graphite has been increasing by approximately 5% per year since 2000 due to the ongoing modernization of China, India and other emerging economies, resulting in strong demand from traditional end uses such as the steel and automotive industries. Of the 1.2 million tons of graphite produced annually, approximately 40% is of the most desirable flake type. China, which produces about 73% of the world's graphite, is seeing production and export growth leveling and export taxes and a licensing system have been instituted. A recent European Commission study regarding the criticality of 41 different materials to the European economy included graphite among the 14 materials high in both economic importance and supply risk (Critical Raw Materials for the EU, July 2010). As a function of these fundamentals, demand for graphite and thereby prices are expected to rise as electric vehicles and lithium battery technology continue to be adopted and while the material performs a greater role in new technology applications. Graphite prices have been increasing in recent months and over the last couple of years and prices for large flake, high purity graphite (+80 mesh, 0.2mm, 94-97% Carbon) have more than doubled. 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 located throughout Quebec. With management experience in green technology, Quebec exploration and development, and the junior resource sector, Canada Strategic Metals is well positioned to aggressively advance this promising portfolio for our shareholders. For more information on Canada Strategic Metals Inc., please visit www.canadastrategicmetals.com or call 604.685.5851. Neither 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. On behalf of the Board, "Ron MacDonald" Executive Chairman Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's plans for and intentions with respect to the acquisitions and exploration of the Quebec North Shore and Champagne Properties, constitute "forward-looking statements" and "forward-looking information" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals and any required financing to complete the Company's property options and planned exploration activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to the Company's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, actual results of the Company's exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. - Copyright (c) 2012 Thenewswire.ca - All rights reserved.