VANCOUVER, BRITISH COLUMBIA – April 25, 2003 – Strategem Capital Corporation (the “Company” or “Strategem”) (TSX-V: SGE) announced today that it has agreed to make an equity investment (the “Private Placement”) in Hydromet Technologies Limited (“Hydromet”) (TSX-V: HTL), a junior gold exploration company listed on the TSX Venture Exchange.
“Hydromet has a portfolio of interesting properties, very low overhead, and a president, Robin Slaughter, who is full time in South and Central America looking for additional opportunities,” said Kenneth W. Morgan, the President and CEO of Strategem. “This investment fits our stated goal of being actively involved in early stage opportunities that we can help grow.”
The management of Strategem believe that there is a high probability of stronger gold prices in the longer term driven by factors such as decreasing reserves in the major producers, uncertainty around the US dollar, increasing US debt levels, inflation fears, and uncertainty in the broader equity markets. Although gold exploration is inherently risky, it can offer phenomenal returns if an economic discovery is made.
Details of the Private Placement
Strategem has agreed to invest $225,000 for 1,125,000 units of Hydromet at $0.20 per unit, subject to regulatory approval. Each unit will consist of one common share and one share purchase warrant allowing the purchase of an additional common share at $0.20 for two years. Upon closing, Kenneth W. Morgan, the President and CEO of Strategem, will be appointed as a director and Chief Financial Officer of Hydromet and Hydromet will reimburse Strategem, based on time expended, for Mr. Morgan’s services.
For further information please contact:
Strategem Capital Corporation
Kenneth Morgan, President and Chief Executive Officer
Suite 410, 325 Howe Street