Solid closes $300,000 debt financing



    EDMONTON, Sept. 12 /CNW/ - Solid Resources Ltd. ("Solid" or the
"Company") announces that it has closed a $300,000 debt financing (the
"Loan"). Mr. Alvin Harter, a related party to the Company, has lent $300,000
to the Company pursuant to the terms of a non-convertible promissory note (the
"Note"). The Note provides: (a) for interest at the rate of 10% per annum
(with interest for the first 6 month period being prepaid by a deduction
against the principal amount); (b) that it is payable on demand after 90 days
written notice; and (c) that no demand may be made by Mr. Harter under the
note until 6 months have lapsed from the date of issue.
    In conjunction with the Loan, previous issued demand debt in the
aggregate amount of $1,110,739 (the "Existing Debt") owning to Mr. Harter and
Ms. Lucie Doolaege has been restated such that no demand may be made prior to
December 1, 2007 and thereafter demand may only be made after 90 days written
notice. Also, the Company has granted collateral security on its Bear Property
in the Northwest Territories to secure repayment of both the Loan and the
Existing Debt.
    The TSX Venture Exchange ("TSXV") has, pursuant to correspondence dated
September 4, 2007, conditionally accepted the Loan, the restatement of the
Existing Debt and the grant of security. The TSXV has advised that final
acceptance will be issued upon receipt of executed copies of all transaction
documents and the issuance of this news release. In addition, the Executive
Director of the Alberta Securities Commission has, pursuant to correspondence
dated Sept 7, 2007, granted permission for the loan and the restatement of the
existing debt as it pertains to Mr. Harter.
    The proceeds of the Loan will be used for exploration expenses on the
Company's Lara Property located in Peru and for working capital.
    Although the Company explored completing financings with non-related
parties, the current trading halt imposed by the TSXV did not make it possible
to do so. As such, the Board of Directors formed a special committee (the
"Special Committee"), consisting of its independent Directors, to negotiate
the terms of the Loan with Mr. Harter. The Special Committee and the Board of
Directors unanimously concluded that the Loan, the restatement of the Existing
Debt and the grant of security were on commercially reasonable terms and would
improve the financial position of the Company.
    Trading of the Company's stock on the TSXV continues to be halted pending
completion of a review of Mr. Harter's suitability to be associated with the
Company. As was previously announced, in response to the suitability review,
the Company has voluntarily put Mr. Harter's consulting agreement in abeyance
on an interim basis; during such period, Mr. Harter will not provide services
to the Company and he will not be paid any compensation. The Company is
committed to assisting and continues to assist the TSXV in its suitability
review with a view to having trading re-instated as soon as possible.

    Certain statements contained in this press release, including statements
which are related to exploration activity and future prospects and
profitability and which may contain words such as "could", "should", "expect",
"believe", "will" and similar expressions and statements relating to matters
that are not historical facts are forward-looking statements. Such
forward-looking statements involve known and unknown risks and uncertainties
which may cause the actual results, performances and/or achievements of Solid
to be materially different from any future results, performances or
achievements expressed or implied by such forward-looking statements. Such
factors include fluctuations in the market conditions and prices of tantalum,
lithium, tin, silver and other metals and related products and services;
competition; political and economic conditions in countries in which Solid
does business; changes in laws and regulations, including environmental
regulations, to which Solid is subject, and other factors which are described
in further detail in Solid's filings with the Canadian Securities Regulators.

    The TSX Venture Exchange has not reviewed this release and does not
    accept responsibility for the adequacy or the accuracy of this release.





For further information:

For further information: Garnet Harter, Interim President, (780)
416-7525, gharter@solidresources.com; Harry McKinders, Director of Investor
Relations, (780) 940-1030, hmckinders@shaw.ca

Organization Profile

Solid Resources Ltd.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890