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TORONTO, April 9, 2013 /CNW/ - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX: SUE) (BVL: SUE) (OTCQX: SDDDF)
announces that Agnico-Eagle Mines Limited ("Agnico-Eagle") has entered
into a subscription agreement to make a strategic investment of
$24,000,000 into Sulliden through a non-brokered private placement of
units. As a result of the transaction, Agnico-Eagle will own 9.96% of
Sulliden's issued and outstanding shares on a non-diluted basis.
Under the terms of the subscription agreement, Agnico-Eagle will
purchase a total of 26,966,292 units at a price of $0.89 per unit.
Each unit is comprised of one common share and 0.7 of a common share
purchase warrant. Each whole share purchase warrant will entitle
Agnico-Eagle to acquire one common share of the Company at a price of
$1.31 for a period of two years from the date of issuance. In the
event that all warrants are exercised, an additional $24.73 million
will be raised.
, President and CEO of Agnico-Eagle commented, "Our investment
highlights the quality and potential of Sulliden's Shahuindo Project.
We also view this as an opportunity to gain exposure to another
jurisdiction with a well-established mining culture. We look forward
to participating in the advancement of Shahuindo towards production."
, Chairman and CEO of Sulliden, commented "We are very
pleased to welcome Agnico-Eagle as a strategic shareholder.
Agnico-Eagle is a world-class mining company and a leader in corporate
social responsibility with a proven track record of excellence in the
development and operation of global mines. Agnico-Eagle was very
thorough with its technical review and we believe this investment
represents a strong endorsement of the quality and potential of the
Shahuindo Project. We look forward to the continued positive
development of our project with the ongoing participation of local
communities, municipalities and government departments. The $24
million investment by Agnico-Eagle, in conjunction with the previously
announced debt facility of $125 million, puts us in a strong financial
position to advance Shahuindo."
The closing of the private placement is expected to occur on or about
April 12, 2013 and is subject to all necessary regulatory approvals.
The common shares issuable pursuant to the offering (including the
common shares issuable upon the exercise of the warrants) are subject
to a mandatory four-month hold period. Upon closing of the private
placement, subject to certain conditions, Agnico-Eagle will have the
right to participate in any future equity offerings by the Company in
order to maintain its pro rata investment in the Company.
The Company intends to use the proceeds of the transaction to fund the
development of the Shahuindo Project and for general working capital
Sulliden's Shahuindo Project is located in a world-class gold producing
belt in northern Peru. In September 2012, the Company completed a
Feasibility Study highlighting a straightforward open pit mine with
heap leach recovery. The capital requirement of the mine is an
estimated $131.8 million, which would support a mining rate of 3.65
million tonnes per year and annual production of approximately 90,000
gold equivalent ounces at average cash operating costs of $552 per
, Vice President of Operations and Technical Services for
Sulliden is the Company's designated Qualified Person for the purposes
of the Feasibility Study. Mr. Milbourne has reviewed and approved the
scientific and technical contents of this press release.
Sulliden Gold Corporation Ltd. is a Canadian precious metals company
focused on the exploration and development of its wholly owned gold and
silver Shahuindo Project, located in a prolific gold producing district
in northern Peru. Sulliden is listed on the Toronto (TSX) and Lima
(BVL) stock exchanges under the symbol "SUE", as well as the premier
tier of the U.S. Over-the-Counter (OTC) market (OTCQX) under the symbol
"SDDDF". For more information about Sulliden, please visit www.sulliden.com.
On behalf of Sulliden Gold Corporation Ltd.:
Chairman & CEO
Caution regarding forward-looking information:
These securities being offered have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") and may not be offered or sold in the United States or
to, or for the benefit of, U.S. persons (as defined in Regulation S
under the U.S. Securities Act) absent registration or an applicable
exemption from registration requirements. This release does not
constitute an offer for sale of securities in the United States.
This press release contains "forward looking information" within the
meaning of applicable Canadian securities legislation. Forward looking
information includes without limitation, statements regarding the terms
and use of proceeds of the private placement, the ability of the
Company to complete the private placement, the impact of the private
placement on the Company, the receipt of all required regulatory
approval, the closing date of the private placements, next steps for
the property, progress in development of mineral properties, projected
capital and operating expenses, future metal prices, the future
financial or operating performance of the Company and anticipated
production schedule. Generally, forward looking information can be
identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved". Forward-looking
information is subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of the Company to be materially different
from those expressed or implied by such forward-looking information,
including but not limited to: general business, economic, competitive,
geopolitical and social uncertainties; the actual results of current
exploration activities; other risks of the mining industry and the
risks described in the annual information form of the Company. Although
the Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward looking information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.