EDITOR: | March 26th, 2014

Strata Completes Financing and Diamond Mountain Agreement; Jason Bahnsen Named President and CEO

| March 26, 2014 | No Comments

March 26, 2014 (Source: Marketwired) — Strata Minerals Inc. (TSX VENTURE: SMP)

Highlights include:

  • Strata Closes $1,500,000 financing for work on Utah phosphate project
  • Dundee Resources becomes cornerstone investor with 18.4% share in Strata
  • Diamond Mountain Phosphate Project Option Milestone Agreement fulfilled
  • Jason Bahnsen Named President and CEO

Strata Minerals Inc. (TSX VENTURE: SMP) (“Strata” or the “Company”) is pleased to announce that it has closed its previously announced non-brokered private placement financing in the amount of $1,500,000 (the “Private Placement”).

Concurrent with the closing of the Private Placement, Strata announces that it has completed all closing conditions associated with the previously announced Diamond Mountain Project Option Agreement (the “Option Agreement”) with Utah Minerals Resources LLC (“UMR”), a private exploration and development company.

In addition to the closing of the Private Placement and the completion of the Option Agreement, Strata is pleased to announce the appointment of Jason Bahnsen as President and CEO effective March 1, 2014.

Mr. Bahnsen is a mining engineer who most recently served as the President & CEO of Gobi Coal, a private coal company based in Mongolia. Previously, Mr. Bahnsen was a resource banker based in Australia and Asia in senior positions, including Head of Metals & Mining Asia for Deutsche Bank in Hong Kong. Mr. Bahnsen brings a wealth of mine development, operations, corporate and capital markets experience to his new role with Strata. Mr. Bahnsen has been a member of Strata’s board of directors since November 2012.

“Today’s developments mark an important transition for Strata Minerals towards its focus on advanced stage exploration at Diamond Mountain in Utah and its leadership under Jason Bahnsen,” said Hugh Agro, Chairman.

Strata plans to commence exploration diamond drilling on the Diamond Mountain Project this exploration season with the target to delineate a NI 43-101 compliant resource estimate by the end of 2014.

Private Placement Financing

A total of 12,500,000 units (“Units”) were issued at a price of $0.12 per Unit in connection with the Private Placement. Each Unit consists of one common share of the Company and one-half of one share purchase warrant. Each warrant entitles the purchaser to purchase an additional common share in the capital of the Company for a period of 18 months from the date of issuance. Where the Strata common shares trade for twenty (20) consecutive trading days at a weighted average trading price of not less than $0.18 per share, Strata may accelerate the expiry of the warrants, such that the warrants shall expire within 30 days of the issuance of a news release by Strata disclosing such accelerated expiry.

Dundee Corporation (“Dundee”) subscribed for a total of 3,941,667 Units as part of the Private Placement and upon closing of the Private Placement, will own approximately 18.4% of the shares of the Company on an undiluted basis.

Under the terms of the subscription agreement with Dundee, the Company has granted a pre-emptive right to Dundee whereby Dundee will have the right to participate in any subsequent equity offering for cash by the Company on a pro rata basis. This right will continue until the earlier of five years from the closing of the Private Placement and the date on which Dundee and its affiliates hold less than 12.5% of the issued and outstanding shares of the Company.

Both the common shares issued as part of the Units and any common shares issued upon exercise of the warrants, are subject to a hold period and may not be traded until July 21, 2014, except as permitted by applicable securities legislation and the rules of the TSX Venture Exchange.

No finders fees are payable in association with the Private Placement.

The net proceeds from the Private Placement will be used for exploration of the Diamond Mountain Project and for working capital purposes.

The Diamond Mountain Project

The Diamond Mountain Project is an advanced exploration stage property consisting of approximately 4,000 hectares located in the State of Utah. Previous phosphate exploration work on the lands was conducted in the 1960-70’s by US Steel Corp which outlined phosphate mineralization in two gently dipping seams of phosphoric rock totaling approximately 5 meters in thickness. The mineralized material sub-crops to the north and gently dips to the south. The project is adjoining to the west by Simplot Corporation’s Vernal phosphate mine and beneficiation complex which reportedly produces at a rate of approximately 1 million tons per annum of concentrated phosrock grading an average of 30% P2O5.
Under the terms of the Option Agreement, Strata can earn a 51% interest in the Diamond Mountain Project by paying total cash consideration of US$75,000 and Unit consideration of C$100,000 to UMR and incurring expenditures of US$1,000,000 in exploration and development on the Diamond Mountain Project on or before a target date of December 15, 2014.

Strata can earn a further 29% interest to hold an aggregate share of 80% of the Diamond Mountain Project by incurring a further US$1.5 million in exploration and development expenditures on the project on or before a target date of December 15, 2015 and paying a further US$100,000 to UMR and issuing C$100,000 in shares priced in the context of the market at the time of vesting.

Upon the completion of the Private Placement and the Option Agreement, Strata has a total of 21,413,997 common shares issued and outstanding.

“Hugh Agro”

About Strata Minerals Inc.

Strata Minerals Inc., is an emerging, phosphate focused, agricultural nutrient company exploring for commercial-scale phosphate rock mineralization deposits. Armed with the objectives of becoming a supplier to the US and global fertilizer industry and generating wealth for its shareholders, Strata is currently advancing its phosphate exploration projects in Utah, USA and in Western Australia, Australia. All references to the Company in this release include the Company’s wholly owned Australian subsidiary, Strata Minerals Pty Ltd. For further information, please refer to the Company’s website at www.strataminerals.com.

Special Note Regarding Forward-Looking Statements

Certain statements included herein constitute forward-looking statements. The words “expect”, “intend”, “anticipate”, “propose” and “may” and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding future financings, exploration results and the development and operation of Strata’s mineral properties. Forward-looking statements are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management teams of Strata, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks and accordingly may not occur as described herein or at all. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such 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 news release.


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