Here is the November 15 News Release detailing Min SILVER SPRUCE PROVIDES UPDATE ON RECENT DEVELOPMENTS
Silver Spruce Resources Inc. has commented on recent record trading levels, the company's current share price in light of the proposed private placement and its strategy going forward.
Record trading levels
In the period immediately following its Oct. 22, 2012, news release announcing that the company would raise up to $1-million through a private placement, Silver Spruce's shares have traded at record volumes and fallen to two cents from a range of 3.5 cents to five cents prior to the release. The majority of the approximately 18 million shares traded after Oct. 22, 2012, traded anonymously, with every indication that they were related to one main seller. During this period, there were no fundamental changes in the company's projects or financial condition.
"The silver lining in the exit of one insider with a large share position is that that many buyers stepped in and purchased shares at a greatly reduced price, indicating their belief in the longer-term prospects and value of the company. I thank them for showing confidence in our company, as well as our many other shareholders for staying the course and taking a long-term view in tough times," says Peter Dimmell, president and chief executive officer of Silver Spruce Resources.
Status of current prospects
As indicated in recent news releases, exploration on the company's Big Easy gold/silver prospect on the island of Newfoundland is progressing well. Phase II drilling results have been reported and a 3-D structural compilation of all drill results is under way. Preliminary airborne survey data have been received and the final data are expected soon -- this will be integrated with the drilling and regional exploration to better define target areas for future exploration.
"Our team is systematically evaluating a promising epithermal-style gold/silver prospect along a regional belt that is receiving significant exploration attention. Once we receive all data and complete compilation work, we will release that information along with details of our 2013 exploration and deep drilling program for the Big Easy prospect," says Mr. Dimmell.
The company also remains bullish on the medium- to long-term outlook for uranium. Silver Spruce can hold the majority of its uranium claims in the CMB (central mineral belt) and elsewhere in Labrador for a number of years without requiring more exploration, until uranium prices rebound and conditions for raising exploration capital for uranium exploration are more favourable.
Status of the private placement
On Oct. 22, 2012, Silver Spruce issued a news release indicating the company would be proceeding with a private placement of units, consisting of shares at five cents and, depending on flow-through or non-flow-through options, a half or full warrant. The company believes that its shares are undervalued and is therefore not planning to change the conditions of the private placement at this time. "We believe it is prudent to see how our stock price recovers from the exit of the insider with the significant share position. While we will need to raise capital to fund our 2013 program at Big Easy, a private placement is not the only option we are pursuing," says Mr. Dimmell.