Montreal, Canada - March 5, 2004 - Sulliden Exploration Inc. (“Sulliden”) (TSX: SUE) is pleased to announce that it has entered into an agreement to purchase the 30% interest in the Shahuindo gold/silver property held by Socrate Capital Inc.
The agreement provides for the issuance of twelve million common shares of Sulliden Exploration Inc., in addition to four million warrants and a cash consideration of Cdn $4 million. The common shares will be subject to a voting trust agreement and escrowed for a period of fifteen months, to be released on a quarterly basis. The warrants will be exercisable at Cdn $3 per common share over a period of eighteen months. Included in the transaction is the cancellation of Sulliden's eventual NSR and back-in rights in the Mario property.
"We view this agreement as very important to our longer term strategy of maximizing the full potential of the Shahuindo property for our shareholders. With 100% ownership of this outstanding property as it enters the second phase of exploration, Sulliden is firmly positioned to pursue its vision," remarked Jacques Trottier, President of Sulliden Exploration. "I would like to gratefully acknowledge the support of Socrate Capital in the early days of the project which enabled us to meet our purchase commitments as well as proceed with our exploration plans."
Effective with this transaction, which is subject to regulatory approval, the total number of shares issued and outstanding is 55,680,331 shares.
Sulliden Exploration Inc. is a mineral exploration company with interests located in Canada and Peru. Its principal asset is a 100% interest in the Shahuindo gold-silver project in northern Peru which announced encouraging results of its first phase of drilling. A second phase drilling program has been initiated encompassing 10,000 meters of diamond drilling to test the extensions of the mineralized zones outlined in the first phase of drilling, as well as additional exploration targets from the soil geochemical survey. The program is fully funded given the Company's strong working capital.
For Further information please contact:
Dr. Jacques Trottier, President
Tel: (514) 861-1953
E-mail: sulliden@colba.net
Donna Yoshimatsu, VP Investor Relations
Tel: (416) 362-8809
E-mail: dyoshi@sulliden.com
Certain of the information contained in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include without limitation, statements regarding estimates of reserves and resources, future plans and objectives, uncertainty with respect to precious metal price volatility, title to properties, project financing and regulatory environmental and other permits. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Sulliden’s expectations are disclosed under the heading “Risk Factors” in its 2003 Annual Report as well as in its 2003 Annual Information Form (AIF) both of which are filed with Canadian regulators on SEDAR.
