TORONTO, May 19, 2016 /CNW/ - Sulliden Mining Capital Inc. ("Sulliden" or the "Company") (TSX: SMC) has entered into an agreement with Carpathian Gold Inc. (CSE: CPN) ("Carpathian") to acquire 71,428,571 units, or 7.9% of the issued and outstanding shares of Carpathian, at a price of CAD$0.07 per unit, for total consideration of CAD$5,000,000. Each unit consist of one (1) common share of Carpathian and one-half (0.5) of a common share purchase warrant ("warrant"). Each warrant will allow Sulliden to acquire one common share of Carpathian at a price of CAD$0.12 for a period of two years from the date of issuance. The warrant exercise period may be accelerated if the common shares of Carpathian trade at a price above CAD$0.15 for a period of 20 consecutive trading days.
As part of the agreement, Peter Tagliamonte, Sulliden's Senior Vice-President, and Stan Bharti, director of Sulliden, have joined Carpathian's board of directors, and will help play an active role in the development of Carpathian's Rovina Valley Gold Project, located in Romania.
Justin Reid, President and CEO of Sulliden Mining Capital, commented, "We are very excited about our new investment in Carpathian Gold, and the Rovina Valley asset, which is the second largest gold deposit in Europe. This investment is in line with Sulliden's proven strategy of driving value by investing in companies with quality development projects. This is a tremendous opportunity and we look forward to our roles as directors of Carpathian to help determine the optimal development scenario for the project."
Please see Carpathian's NI 43-101 technical report dated August 30, 2012, (available on www.sedar.com) for details related to the latest gold and copper mineral resource estimate for the Rovina Valley project. The most recent technical study for the project is a preliminary economic assessment, which was completed in April 2010.
About Sulliden Mining Capital
Sulliden is a Canadian venture capital company focused on the acquisition and development of quality mining projects in the Americas, in addition to identifying opportunities for active investments.
Sulliden Mining Capital Inc.
On behalf of the Board
Chief Executive Officer & Director
Caution regarding forward-looking information:
This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. 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 includes statements with respect to the investment into Carpathian; mineral resource estimates; future technical and engineering studies, their results and timetables; statements regarding reclamation obligations and mineral price projections, among other things. 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 public disclosure documents 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 Mining Capital
For further information: Caroline Arsenault, Corporate Communications, +1 (416) 861-5805