- Issue of shares for debt
- Grant of stock options
Toronto, Ontario, Canada: March 27, 2009: Sulliden Exploration Inc. (TSX: SUE) announces that, subject to regulatory approval, it plans to undertake a non-brokered private placement of up to $5 million through the issue of units (the “Units”) at an issue price of $0.65 per Unit, with each Unit consisting of one common share and one share purchase warrant with each warrant exercisable at $0.80 per share for a period of two years.
The net proceeds of the private placement will be used to continue development of the Shahuindo gold/silver property in Peru, payments under the recently announced Settlement Agreements of the Shahuindo dispute, and general working capital.
Closing of the financing is subject to TSX approval. The Company may pay finder fees in connection with the financing.
Issue of Shares for Debt
The Board of Directors has also approved the issue, subject to regulatory approval, of 2,150,000 shares, at an issue price of $0.65 per share, in settlement of certain outstanding obligations including legal fees and accrued compensation. A total of 1,300,000 shares were issued to insiders.
Grant of Stock Options
Sulliden also announces that the Board of Directors has approved the grant of stock options under the Company’s Stock Option Plan on a total of 4,950,000 shares at an exercise of $0.65 per share to directors, officers, employees and other service providers. Options on 1,650,000 will vest over a period of two years and 3,000,000 options vest immediately.
Caution regarding forward-looking information:
Statements contained in this document which are not historical facts are forward-looking statements that involve risk, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. This forward-looking information includes, or may be based upon, estimates, forecasts, and statements as to management’s expectations with respect to, among other things, the outcome of legal proceedings, the issue of permits, the size and quality of the company’s mineral resources, progress in development of mineral properties, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, and the financial results of the company. Factors that could cause such differences, without limiting the generality of the following, include: volatility and sensitivity to market metal prices; impact of change in foreign currency exchange rates and interest rates; imprecision in reserves estimates; environmental risks including increased regulatory burdens; unexpected geological conditions; adverse mining conditions; political risks arising from operating in developing countries; legal title to properties, outcome of litigation, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities; and other development and operating risks.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves.
For further information contact:
John F. Kearney, President
Tel: (416) 703-8287
E-mail: contact@sulliden.com
Stan Bharti, Chairman
Tel: (416) 861-5876
Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this document. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
