/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES./
TORONTO, Oct. 11, 2013 /CNW/ - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX: SUE) (BVL: SUE) (OTCQX: SDDDF) has
closed its previously announced public offering (the "Offering") of
39,300,000 common shares ("Common Shares") at a price of $1.02 per
Common Share (the "Offering Price") for gross proceeds to the Company
of $40,086,000.
The net proceeds of the Offering will be used to help fund the
development of the Shahuindo Project and for general corporate
purposes.
The Common Shares were sold pursuant to an underwriting agreement (the
"Underwriting Agreement") between the Company and a syndicate of
underwriters co-led by National Bank Financial Inc. and Scotia Capital
Inc., and also including Raymond James Ltd., Cormark Securities Inc.,
GMP Securities L.P., Desjardins Securities Inc., Haywood Securities
Inc. and Macquarie Capital Markets Canada Ltd. (collectively, the
"Underwriters"). Pursuant to the Underwriting Agreement, the
Underwriters have the option to purchase an additional 5,895,000 Common
Shares from the Company at the Offering Price for a period of 30 days
from the closing of the Offering.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The
securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "1933 Act"), or any
state securities laws and may not be offered or sold within the United
States or to, or for the account or benefit of U.S. persons (as defined
in Regulation S under the 1933 Act) absent such registration or an
applicable exemption from such registration requirements.
About Sulliden Gold Corporation Ltd.
Sulliden is a mineral exploration and development company focused on
advancing its flagship Shahuindo project to production. Currently in
its permitting phase, this low cost heap leach gold and silver project
is located in a prolific gold-producing district in northern Peru. A
September 2012 Feasibility Study (based on $1,415 Gold and $27 Silver)
on the foundation phase of the project estimates an initial CAPEX of
$131.8 million that will support an annual mining rate of 3.65 million
tonnes producing approximately 90,000 of gold equivalent ounces for
10.4 years at cash operating costs of $552/oz. This initial mine
scenario features a pre tax IRR of 52.2% and post-tax IRR of 37.8%. The
technical study considers only approximately 40% of the gold ounces
from the total oxide mineral resource. Additional mineral resource
growth is anticipated from a number of highly prospective exploration
targets on the property that remain largely unexplored. Sulliden is led
by a proven management team with hands-on experience developing and
operating mines in Latin America.
Sulliden shares are listed on the Toronto Stock Exchange (TSX) under the
symbol "SUE", on the Bolsa de Valores, Lima (BVL), also under the
symbol "SUE", and on the premier tier of the U.S. Over-the-Counter
market (OTCQX) under the symbol "SDDDF".
The technical information provided in this news release was reviewed and
approved by Joseph C. Milbourne, Sulliden's VP Technical Services and
Operations, and a qualified person for the purposes of National
Instrument 43-101.
On behalf of Sulliden Gold Corporation Ltd.:
Peter Tagliamonte
Chairman & CEO
Justin Reid
President & Director
Cautionary statement regarding forward-looking information
This press release contains "forward looking information" within the
meaning of applicable Canadian securities legislation. Forward looking
information includes without limitation, statements regarding the
expected use of proceeds from the Offering, the size and quality of the
company's mineral resources, progress in development of mineral
properties, future capital and operating expenses, future metal prices,
the future financial or operating performance of the Company, the
prospective mineralization of the properties, planned exploration
programs and anticipated production schedule. Generally, forward
looking information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of
such words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking information is based on assumptions that
have been made by the Company as at the date of such information,
including those assumption described in the Company's technical report
entitled "Technical Report on the Shahuindo Heap Leach Project,
Cajabamba Peru", dated November 9, 2012, which is available at www.sedar.com. Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: general
business, economic, competitive, geopolitical and social uncertainties;
the actual results of current exploration activities; other risks of
the mining industry and the risks described in the annual information
form of the Company. Although the Company has attempted to identify
important factors that could cause actual results to differ materially
from those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward looking information.
The Company does not undertake to update any forward-looking
information, except in accordance with applicable securities laws.
SOURCE Sulliden Gold Corporation Ltd.
