VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/30/12 -- STRONGHOLD METALS INC. (TSX VENTURE:Z)(OTCQX:SDMTF)(FRANKFURT:E9X) ("Stronghold" or the "Company") -
Stronghold is pleased to announce that pursuant to the terms of its Amended and Restated Earn-In and Joint Venture Agreement (the "Amendment Agreement") with Omai Gold Mines Ltd. ("OGML") and Eagle Mountain Gold Inc. ("EMGI"), affiliates of IAMGOLD Corporation ("IAMGOLD") it has exercised the option to earn a 50% interest in EMGI. The Company has the right to acquire up to 100% of the issued and outstanding shares of EMGI. EMGI owns the Eagle Mountain Gold Property (the "Property") in Guyana. The remaining 50% of EMGI is owned by OGML, a 95% owned subsidiary of IAMGOLD. The Republic of Guyana ("Guyana") holds the remaining 5% of OGML.
-- The Company has issued 7,500,000 shares to OGML, which share issuance
together with prior cash payments (US$600,000) share issuances
(4,000,000) to OGML and completion of exploration expenditure
commitments (approximately US$3,500,000) on the Property have met the
conditions for Stronghold to acquire 50% of EMGI and effectively an
indirect 50% interest in the Property. Stronghold and OGML will become
joint venture partners, with Stronghold continuing to act as Operator.
-- IAMGOLD indirectly through OGML (subject to Guyana's 5% interest) now
owns approximately 15.6% of Stronghold's issued and outstanding shares
and has become its largest shareholder.
-- Stronghold will have no further cash payments due to OGML in 2012.
-- Stronghold has a clear path to acquiring 100% of EMGI. Stronghold has
the right to acquire the remaining 50% interest in EMGI on or before
April 30, 2013 by paying OGML an additional US$1,000,000 in cash or
shares, at the Company's discretion, as more particularly described in
Stronghold's news release of January 16, 2012.
-- Stronghold has issued 635,105 shares to Guiana Shield Resources Inc.