TORONTO, Dec. 15 /CNW/ - Sulliden Exploration Inc. (TSX: SUE) reports that it has filed its quarterly and half yearly financial statements and management's discussion and analysis for the period ended October 31, 2008. Sulliden reported a loss of $131,754 and $322,870 for the three and six months periods ended October 31, 2008, compared to losses of $294,956 and $546,750 for the comparative period in 2007. The decrease is mainly attributable to lower stock-based compensation charges, lower professional and advisory fees and an exchange gain of $93,007 in the six month period ended October 31, 2008 versus an exchange loss of $47,603 for the same period in 2007.
During the three and six month periods ended October 31, 2008 Sulliden invested $812,484 and $1,555,463 respectively in exploration and project expenditures in Peru, principally on the Shahuindo property.
During the quarter ended October 31, 2008, total proceeds of $2,720,429 was raised by the Company through the exercise of warrants and options. 4,735,161 warrants with an exercise price of $1.00 per share and maturity date of August 31, 2008 expired. Currently there are no warrants outstanding.
At October 31, 2008, the Company held $3,575,442 in cash and guaranteed investment certificates, compared to $2,623,376 at October 31, 2007.
Shahuindo Exploration
During the quarter, a limited program of surface exploration was undertaken on the Shahuindo property. Follow-up ground work, consisting of detailed mapping and sampling, was carried out in the gaps along the "main mineralized corridor" and northwest of the Main or East Zone. In addition, a preliminary program was initiated to accumulate data and assess key technical features to input in a future feasibility and environmental impact study. This assessment included setting up a meteorological station, measurement of key river and creek flows and assessment of key mining features, including electrical availability, water availability and land requirements.
On June 2, 2008 a Technical Report entitled "Shahuindo Property - Report on the 2007 Exploration Campaign" dated April 2008 was filed on SEDAR and contains the detailed results of the 2007 exploration program.
Shahuindo Litigation
On November 13, 2008 the Supreme Court of Peru heard Sulliden's appeals in three separate proceedings in the legal dispute relating to Sulliden's ownership of the Shahuindo gold/silver property in Peru.
The most significant part of the hearing before the Supreme Court was the appeal taken by Sulliden against the decision of the Commercial Chamber of the Superior Court of Lima dated August 9, 2007, granting Algamarca's Nullity Petition against the Arbitration Decision of July 2006, which had declared that Sulliden had fully met the terms and obligations of the Shahuindo Transfer Contract dated November 6, 2002 and had properly acquired the property, and declaring null and void the Arbitration on the technicality that Algamarca had not properly agreed to arbitration.
The Supreme Court also heard Sulliden's appeal against the decision of the Superior Court of Cajamarca dated January 18, 2008, confirming the decision of the Civil Judge of San Marcos dated January 20, 2006 granting an injunction against certain officers of Sulliden from entering the Shahuindo property.
On December 2nd, 2008 the Supreme Court announced that it had allowed Sulliden's appeal on the injunction. Sulliden expects that a decision in one or both of the remaining proceedings may be issued before year end.
Sulliden remains confident that the outcome of the appeals will be favorable to Sulliden. However, notwithstanding the hearing of the appeal by the Supreme Court, Sulliden is continuing in negotiations with Algamarca on a possible settlement of the Shahuindo litigation and dispute. These negotiations have not yet resulted in a resolution and there can be no assurance that the negotiations will reach a satisfactory conclusion.