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Strategic Resources Acquires BlackRock Metals Vanadium Project in Quebec

Apr 3, 2023

Strategic Resources Inc. closed a deal with BlackRock Metals through which it would acquire acquisition of all the shares of BlackRock Metals Inc. in exchange for common shares of Strategic Resources in what constitutes a reverse takeover of the company.

A reverse takeover (RTO) is a process whereby private companies can become publicly traded companies without going through an initial public offering (IPO). Going public through a reverse takeover allows a privately held company to become publicly held at a lesser cost, and with less stock dilution, when compared with an IPO.

The terms of the share exchange agreement between Strategic Resources and BlackRock, was signed on December 13, 2022. 

Strategic Resources is a Canadian mining company that is also active in Finland. Through the transaction it now also owns BlackRock Metals vanadium, iron, and titanium project in Chibougamau, Quebec and the Southwest and Armitage Deposits Mineral Resource Estimates property in Saguenay, Quebec.

The two properties extract vanadium, iron and titanium ore from open pit mines and concentrates them at a mill in Chibougamau. Vanadium, iron, and titanium are produced.

Strategic Resources is a Vancouver based exploration and development company focused on vanadium and other metals necessary for an electrified economy. The company is low-cost supplier to the North American market for vanadium & high purity merchant pig iron, a critical ingredient for electric arc furnaces to dilute impurities in scrap steel. Vanadium is used in many industries and applications, from automobiles, grid power storage, hand tools, rebar, ships and industrial tools and airplanes.

Titanium (TiO2) in the form of Ti slag is used as a feedstock for pigments, paints and coatings, and is an ingredient in consumer products including cosmetics, toothpaste and food. It is also used to produce titanium metals for everything from medical implants to lightweight industrial components. 

After closing the transaction between Strategic Resources and BlackRock, Orion Mine Finance received an aggregate of 22,566,086 common shares of in Strategic Resources. Orion also participated in a private placement of subscription receipts from Strategic Resources, which Orion subscribed on February 24, 2023, for a total of 8,600,000 subscription receipts from the company, entitling Orion to receive, subject to the satisfaction of all closing conditions provided for in the Exchange Agreement, a total of 1,433,334 post-consolidation common shares of Strategic Resources. The subscription receipts were automatically converted into common shares on March 31, 2023.

Orion now holds 23,999,420 post-consolidation common shares, representing 40.81% of the Strategic Resource's issued and outstanding common shares. These 23,999,420 common shares acquired by Orion pursuant to the transaction and the private placement have a total value of C$71,998,260.

Orion acquired the common shares for investment purposes. Orion has no current plan or intentions which relate to, or would result in, acquiring additional securities of the Strategic Resources, disposing of securities, or any of the other actions requiring disclosure under the early warning reporting provisions of applicable securities laws. 

Depending on market conditions, Orion's view of the Strategic Resource's prospects and other factors Orion considers relevant, Orion may acquire additional securities of Strategic Resources from time to time in the future, in the open market or pursuant to privately negotiated transactions or may sell all or a portion of its securities of the company.

Image Map of Strategic Metals Black Rock Project

Tags: Quebec / Exploration / Metals / All Articles