BURLINGTON, ON, Jan. 6 /CNW/ - Silver Shield Resources Corp. (TSXV - SSR) ("Silver Shield" or "the Company") has completed a non-brokered
private placement (the "Private Placement") with the MineralFields
Group for aggregate gross proceeds to the Company of $500,000 through
the issuance of flow-through units (each a "Flow-Through Unit") at a
purchase price of $0.06 per Flow-Through Unit. Each Flow-Through Unit
consists of one common share in the capital of the Company, issued on a
flow-through basis under the provisions of the Income Tax Act (Canada),
and one-half of one common share purchase warrant (each whole warrant,
a "Warrant"). Each Warrant has a term of 24 months from the date of
closing of the Private Placement (the "Closing Date") and entitles the
holder thereof to purchase one non-flow-through common share of the
Company at an exercise price of $0.15 per share at any time on or
before 24 months after the Closing Date. The Private Placement closed
on December 31, 2010.
The Company will use the funds for diamond drilling on the Welsh Silver
Mine Project, Elk Lake, Ontario, continuing exploration of the Lost Dog
Gold Project, Timmins, Ontario, and in connection with exploration of
any additional projects the Company may acquire.
As payment of a finder's fee in connection with the Private Placement,
the Company issued 533,333 non-transferable options (each a "Finder's
Option") to Limited Market Dealer Inc. ("LMD") and paid a cash finder's
fee of $20,000.00 to LMD. Each Finder's Option is exercisable to
acquire a unit (a "Finder's Unit") of the Company at an exercise price
of $0.06 per Finder's Unit for a period of 24 months from the Closing
Date. Each Finder's Unit consists of one non-flow-through common share
in the capital of the Company and one-half of one non-transferable
common share purchase warrant (each whole warrant, a "Finder's
Warrant"). Each Finder's Warrant entitles the holder thereof to
purchase one non-flow-through common share of the Company at an
exercise price of $0.15 per share at any time on or before 24 months
after the Closing Date. All of the securities issued in connection with
the Private Placement and to the finder are subject to a four month
hold period expiring April 30, 2010 under applicable securities laws
and the rules of the Exchange.
About MineralFields, Pathway and First Canadian Securities ®
MineralFields Group (a division of Pathway Asset Management), based in
Toronto, Vancouver, Calgary and Montreal, is a mining fund with
significant assets under administration that offers its tax-advantaged
super flow-through limited partnerships to investors throughout Canada
as well as hard-dollar resource limited partnerships to investors
throughout the world. Pathway Asset Management also specializes in the
manufacturing and distribution of structured products and mutual funds
(including the Pathway Multi Series Funds Inc. corporate-class mutual
fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® is active in leading resource financings
(both flow-through and hard dollar PIPE financings) on competitive,
effective and service-friendly terms, and offers investment banking,
mergers and acquisitions, and mining industry consulting, services to
resource companies. MineralFields and Pathway have financed several
hundred mining and oil and gas exploration companies to date through
First Canadian Securities ®.
We seek Safe Harbour.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined on the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Silver Shield Resources Corp.
For further information:
please visit www.silvershieldresources.com or contact:
Silver Shield Resources Corp.
Tim Towers, Chief Executive Officer, Phone: 289-337-6162
Donald Shaxon, Manager of Corporate Development, (289) 838-5936
Fax: 289-337-6678 firstname.lastname@example.org