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Toronto, Ontario, Canada May 8th, 2009 Sulliden Exploration Inc. (“Sulliden” or the “Company”) (TSX: SUE) announces that due to strong institutional demand it has completed a second tranche to finish funding of its previously approved $7.4 million private placement financing of units (“Units”) of Sulliden. The second tranche provides additional gross proceeds of $1,298,753. Sulliden closed the initial tranche for $6.1 million on April 24th. In closing the second tranche Sulliden has issued 1,998,082 Units at a price of $0.65 per Unit (the “Offering Price”), with each Unit consisting of one common share and one share purchase warrant (the “Warrants”) with each Warrant exercisable at $0.80 per share at any time prior to May 8th, 2011. Sulliden intends to use the proceeds of the private placement for the advancement of the Shahuindo Gold Project in Peru and general working capital purposes.
Scott Moore, EVP, Corporate Development stated; “We are pleased with the strong institutional support in Sulliden and the resultant increase in the Private Placement from the previously announced $5.0 million to $7.4 million. The new management team at Sulliden is focused on quickly moving the Shahuindo Gold Project forward. Sulliden has issued a Request For Proposal for a Preliminary Economic Analysis on Shahuindo to several major engineering firms and we will be awarding the contract later this month.”
Issue of Compensation Shares completed
Sulliden has also completed the previously announced issue of 750,000 common shares at an issue price of $0.65 per share in payment of certain outstanding settlement obligations including legal fees (See Sulliden Press Release March 27, 2009).
Following the closing, Sulliden has 108,981,420 shares issued and outstanding.
Compensation Share Grant to Insiders to be voted upon at AGM
The issue of 1,200,000 shares, at an issue price of $0.65 per share, to certain insiders of the Company, as previously announced on March 27, 2009, has been approved by the Board of Directors and in accordance with the requirement of the TSX, is subject to approval by shareholders, which approval will be sought at the next Annual Meeting.
The shares to be issued to insiders are as follows:
| John Kearney, President and Director | 400,000 |
| Javier Fernandez Concha, Vice President | 500,000 |
| Jacques Trottier, Former President and Director | 150,000 |
| Stéphane Amireault, Vice President | 100,000 |
| James Coleman, Deputy Chairman and Director | 50,000 |
The payments relate to outstanding fees and accrued compensation in connection with the settlement of the Shahuindo dispute and litigation (See Sulliden Press Release March 2, 2009).
