TORONTO, April 29 /CNW/ - Silk Road Resources Ltd. (TSX-V; SIL) ("Silk
Road" or the "Company") today announced financial results for the year ended
December 31, 2008. Net Loss for the year was $4,435,000 compared to $3,872,000
for the year ended December 31, 2007. Working capital deficit as at December
31, 2008 was $1,070,000 compared to working capital as at December 31, 2007 of
$1,321,000. The Net Loss per share for 2008 was $0.17 compared to $0.15 for
2007. The complete financial statements and the Company's management
discussion and analysis can be viewed at www.sedar.com.
Net Loss for the fourth quarter of 2008 was $3,406,000 compared to
$2,303,000 for the fourth quarter of 2007. The Net Loss per share for the
quarter was $0.13 compared to $0.09 for the corresponding quarter of 2007.
Furthermore, the Company today announces that, in satisfaction of the
interest owing to Patriarco Holdings Ltd. ("Patriarco") pursuant to the 7%
unsecured convertible debenture in the principal amount of $500,000 (the
"Debenture") issued to Patriarco on July 18, 2008, Silk Road has issued
155,248 of its common shares to Patriarco.
As previously disclosed by Silk Road, Patriarco, in accordance with the
terms of the Debenture, had exercised its option to convert the entire
principal amount of the Debenture into common shares on March 25, 2009.
Pursuant to the terms of the Debenture, any interest owing under the Debenture
was payable by the issuance of common shares of Silk Road. As a result, the
payment of interest in the aggregate amount of $24,451 was satisfied by the
issuance of 155,248 common shares to Patriarco at a price of $0.1575 per
share, as approved by the TSX Venture Exchange.
Patriarco currently holds, directly or indirectly, 4,857,748 common
shares of Silk Road,representing approximately 18.51% of the issued and
outstanding common shares.
On February 23, 2009, the Company announced its intention of merging with
EurOmax Resources Limited through a bid offering and Plan of Arrangement.
Nonetheless, the continuation of the Company is wholly dependent on new
funding to be obtained through the sale of assets or by a successful
third-party financing in the very near future. Recent adverse developments in
the financial markets have made it extremely difficult for companies such as
Silk Road to raise additional funds from these markets. The Company is
urgently exploring a number of alternatives in an attempt to raise the
necessary funds, and is in negotiations for the sale of the Company's interest
in the Jiaxin Joint Venture.
For further information:
For further information: Robert Power, Chairman, Tel: (416) 363-6040,
Fax: (416) 363-6048, Email: firstname.lastname@example.org