VANCOUVER, July 2, 2013 /CNW/ - Sierra Iron Ore Corporation (the "Company") wishes to announce that it has closed the first tranche of the previously announced non-brokered private placement and has issued 3.357.700 units at a price of $0.40 per unit, for gross proceeds of $1,343,080. Each unit consists of one common share and one-half share purchase warrant. Each full warrant will be exercisable to purchase one additional common share of the Company for 24 months from closing, at a price of $0.55 per share.
Finder's fees of $57,846.40 will be paid in cash to qualified parties. All securities issued have a hold period expiring October 29, 2013.
The net proceeds will provide working capital and continued funding of the company's exploration and development field work program which would include a preliminary pilot testing plant operation for the purpose of testing zones at the El Creston iron ore property.
The Company further looks to raise an additional $656,920.00 under the same terms as described above, which is expected to occur on or about July 31, 2013.
About Sierra Iron Ore
Sierra Iron Ore is a growth focused mineral exploration company creating value through the exploration and development of the El Creston property located in the Sinaloa State of Mexico. The company has a continual fieldwork program at the El Creston Property that is comprised of drilling, mapping, sampling and planning for further property development. Roads have been built and upgraded and equipment has been purchased and mobilized for further developing the known magnetite zones identified by recent exploration work.
Sierra Iron Ore also has 100% ownership of the Tom Cat property which is located 200 kilometres east-northeast of Vancouver within the historic Aspen Grove copper camp. The company is currently conducting an exploration program of geological mapping and sampling program as a prelude to a planned diamond drill program.
On behalf of The Board of Directors of Sierra Iron Ore Corporation.
Paul Lee, Director
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 press release, which has been prepared by management.
SOURCE: Sierra Iron Ore Corporation
For further information:
contact Corey Safran, VP Strategic Development, at 609-228-0595, or by email at [email protected].