Salmon River Provides Corporate Update
VANCOUVER, Feb. 22, 2013 /CNW/ - Salmon River Resources Ltd. (TSX.V: SAL) (together with its subsidiaries individually and jointly referred to as "Salmon River" or the "Company") wishes to provide an update on the current status of the Company, its financial position and ongoing negotiations.
Salmon River has been involved for some months in negotiations with an investment group regarding several stages of funding and has recently completed arrangements for an initial funding (the "Initial Funding"). The Initial Funding, when and if completed, will be sufficient for the Company to meet all its current financial commitments, including the Pre-Completion Payment of AUD4 million payable as of 15 December 2012 in respect of its previously announced acquisition of all the outstanding shares of Treppo Grande Iron Pty. Ltd. ("TGI") (See our Press Release of 25 October 2012), payment of all outstanding accounts payable of the Company and funding of current exploration and operating expenses.
As completion of the Initial Funding has taken longer than expected and beyond the due date for the Pre-Completion Payments, Salmon River has been in on-going discussions with the vendor of TGI (the "Vendor"). Salmon River fully expects to be in a position to cover the Pre-Completion Payment and accrued interest charges assuming receipt of the Initial Funding.
The Company has also been in discussion with its existing creditors regarding its obligations to them and fully expects to pay all outstanding balances shortly on receipt of the Initial Funding. While a small number of creditors have threatened legal proceedings and one creditor has taken steps to commence proceedings against a wholly owned subsidiary in Australia, the Company would expect that all such claims would be paid in full upon receipt of the Initial Funding.
Salmon River also wishes to advise that it is fully compliant with all outstanding filings in respect of its obligations on the TGI tenements and intends to recommence exploration activities on the project upon receipt of the Initial Funding.
Salmon River expects that the Initial Funding will be completed based on representations and negotiations with the investment group's representatives. However, no assurances can be given by the Company that the Initial Funding will be completed and all claims settled on a timely basis.
Salmon River expects to be in a position to make further disclosure upon anticipated completion of the Initial Funding.
ABOUT SALMON RIVER RESOURCES LTD.
Salmon River Resources Limited (TSXv: SAL) is a mineral exploration company engaged in the exploration for and development of commercial deposits of iron ore in Western Australia. It exercised its option to acquire five tenements in the Yilgarn region of Western Australia including the Treppo Grande iron ore project, approximately 210 kilometres northwest of Kalgoorlie, comprising three tenements covering approximately 396.7 km2. Completion of the acquisition of the tenements is subject to certain conditions, including cash payments and issuance of shares to the Vendor. For further information visit our website at www.salmonriver.com.au.
This press release contains forward-looking statements that are based on the beliefs of management and reflect Salmon River's current expectations. This press release relates to a significant set of financings and completion of the acquisition of the Treppo Grande Iron Pty Ltd, further exploration and future financing requirements. The forward-looking statements are based on certain assumptions, which could change materially in the future, including the assumption that the transactions and financings contemplated herein will be completed, that Salmon River will be able to settle its trade payables, that Salmon River will be able to complete on its acquisition of TGI and that the Treppo Grande property will ever be developed. By their nature, forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include the risk that funds may not be advanced under the Initial Funding, the definitive financing agreements may not be completed, that Salmon River may not be able to satisfy the claims of its creditors, that Salmon River may not complete the financings in the amounts required and that the Company may not complete on its acquisition of TGI. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking information. Forward-looking information is provided as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required in accordance with applicable laws.
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulatory authorities. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
SOURCE: Salmon River Resources Ltd.For further information:
Salmon River Resources Limited:
Garry Stein, Director
Telephone: +852 9858.0029 (Hong Kong)
Investor Cubed Inc.:
Telephone: +1 (647) 258-3311
Fax: +1 (416) 363-7977