VANCOUVER, British Columbia, July 24, 2012 (GLOBE NEWSWIRE) -- STRONGHOLD METALS INC. ("Stronghold" or the "Company") (TSX-V:Z), (OTCQX:STMDF) and (Frankfurt: E9X)
The Company announces that it has arranged non secured loans (the "Loans") from certain arm's length parties in the aggregate amount of $350,000.
The Loans are for an initial term of 6 months, renewable for an additional term of 3 months (the "Renewal Term") at the option of the Company. The Loans carry interest at a rate of 1% per month for the initial term and 2% per month for the Renewal Term, if any.
As additional consideration of the Loans being granted, the Company has agreed to pay the lenders a bonus equal to 20% of the principal amount of the Loans, payable by the issuance of common shares in the capital of the Company (the "Bonus Shares") at a deemed price of $.05 per Bonus Share.
Accordingly the Company will issue the Lenders in aggregate 1,400,000 common shares in the capital of the Company, or in the event the Bonus Shares are issued subsequent to the Company's share consolidation, 280,000 post consolidation Bonus Shares.
The Company has agreed to pay a finder's fee in the amount of $33,750 to a finder in consideration of the finder arranging the Loans.
The Loans and finder's fee are subject to the acceptance of the TSX Venture Exchange.
The Company also clarifies that it has terminated its consulting agreement for strategic marketing and investor relations with First Canadian Capital Corp., and all options granted pursuant to such consulting agreement have expired.
Mr. Ioannis (Yannis) Tsitos, Stronghold's President and Chief Executive Officer stated: "The Loans we have arranged allow Stronghold to continue its reorganization. The proceeds will be used to pay certain outstanding debt, to commence an updated National Instrument 43-101 report on the Eagle Mountain Property and for general working capital. We appreciate the efforts of the finder and the lenders in arranging unsecured Loans, and commit to completing the reorganization, including the proposed share consolidation and name change, so that we can properly finance Stronghold going forward. We expect the name change and share consolidation to take place this week, immediately upon regulatory approval."
About Stronghold Metals Inc.
Stronghold Metals is an emerging mid-sized gold exploration and development Company with its primary property, the Eagle Mountain gold project, located in Guyana, South America.
For further information please see http://www.strongholdmetals.com or contact:
Mr. Ioannis (Yannis) Tsitos, President and CEO
Stronghold Metals Inc.
On behalf of The Board of Directors of Stronghold Metals Inc.
"Ioannis (Yannis) Tsitos"
President, Chief Executive Officer & Director
This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the corporations control which may cause actual results, performance or achievements of the corporation's to be materially different from the results, performance or expectation implied by these forward looking statements.
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.
The Stronghold Metals logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13563
CONTACT: Mr. Ioannis (Yannis) Tsitos, President and CEO
Stronghold Metals Inc.