/NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE
TORONTO, Oct. 23 /CNW/ - Silk Road Resources Ltd. (TSXV: SIL) ("Silk
Road" or the "Corporation") announces that is has received final approval from
the TSX Venture Exchange in connection with the previously announced closing
of the non-brokered private placement of a 7% unsecured convertible debenture
(the "Debenture") with Patriarco Holdings Ltd. ("Patriarco") in the principal
amount of $500,000. Further to its press release of August 21, 2008, Silk Road
advises that, due to adverse market conditions, it will not continue to pursue
the second tranche closing for $750,000 in Debentures at this time.
All interest owing pursuant to the terms of the Debenture shall, at the
option of the Corporation, be payable by the issuance of common shares of the
Corporation (the "Common Shares") at the prevailing market price of the Common
Shares on the TSX Venture Exchange ("TSXV") and is subject to TSXV approval at
the time of issuance.
The Debenture will mature on July 16, 2011 (the "Maturity Date"). Any
outstanding principal amount of the Debenture will be payable in Common Shares
on the Maturity Date at the conversion price of $1.00 per Common Share.
Subject to necessary regulatory and shareholder approvals, Patriarco shall
have the right, exercisable at any time on or before the Maturity Date to
convert all or any portion of the then outstanding Debenture into Common
Shares at the conversion price of $1.00 per Common Share.
Pursuant to Multilateral Instrument 61-101, the issuance of the Debenture
is a "related party transaction". Please see the Press Release of the Company
dated July 16, 2008 for further details.
Forward Looking Statements:
Certain information regarding the Company set forth in this press
release, including management's assessment of the Company's future plans and
operations contains forward looking statements that involve substantial known
and unknown risks and uncertainties. These forward looking statements are
subject to numerous risks and uncertainties, some of which are beyond the
Company's and management's control, including but not limited to, the impact
of general economic conditions, industry conditions, fluctuation of commodity
prices, fluctuation of foreign exchange rates, imperfection of reserve
estimates, environmental risks, industry competition, availability of
qualified personnel and management, stock market volatility, timely and cost
effective access to sufficient capital from internal and external sources. The
Company's actual results, performance or achievement could differ materially
from those expressed in or implied by, these forward looking statements and
accordingly, no assurance can be given that any of the events anticipated to
occur or transpire from the forward looking statements will provide any
benefits to the Company.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Silk Road Resources Ltd.: David R. Bell,
Chairman, Telephone: (416) 363-4280 and/or Allen J. Palmiere, President & CEO,
Telephone: (416) 363-6045