<< - Issue of shares for debt - Grant of stock options >>
TORONTO, March 27 /CNW/ - 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.
ABOUT SULLIDEN:
Sulliden Exploration Inc. is a mineral exploration company focused on the development of its Shahuindo gold and silver Project. The Shahuindo project is located in northern Peru, in one of the world's most prospective gold and silver regions, sitting approximately 25 km north of Barrick's Laguanas Norte-Alto Chicama 1,100,000 oz/gold per year mine; 70 km south of Newmont's multi-million oz/gold Yanacocha district and 200 km north of Barrick's Pierina 650,000 oz/gold per year mine.
The Shahuindo resource stands at 38 million tonnes grading 0.95 g/t Au and 22.99 g/t Ag, containing 1.2 million oz of gold and 28 million oz of silver (equivalent to 1.6 million oz of gold at a gold to silver ratio of 1:60) in the Indicated Category; and 17.2 million tonnes grading 0.62 g/t Au and 12.83 g/t Ag, containing 342,000 oz of gold and 7 million oz of silver (equivalent to 460,000 oz of gold at a gold to silver ratio of 1:60) in the Inferred Category - (Resource Estimation - Met-Chem Canada Inc