/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
TORONTO, Oct. 11, 2013 /CNW/ - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX: SUE) (BVL: SUE) (OTCQX: SDDDF) has closed its previously announced public offering (the "Offering") of 39,300,000 common shares ("Common Shares") at a price of $1.02 per Common Share (the "Offering Price") for gross proceeds to the Company of $40,086,000.
The net proceeds of the Offering will be used to help fund the development of the Shahuindo Project and for general corporate purposes.
The Common Shares were sold pursuant to an underwriting agreement (the "Underwriting Agreement") between the Company and a syndicate of underwriters co-led by National Bank Financial Inc. and Scotia Capital Inc., and also including Raymond James Ltd., Cormark Securities Inc., GMP Securities L.P., Desjardins Securities Inc., Haywood Securities Inc. and Macquarie Capital Markets Canada Ltd. (collectively, the "Underwriters"). Pursuant to the Underwriting Agreement, the Underwriters have the option to purchase an additional 5,895,000 Common Shares from the Company at the Offering Price for a period of 30 days from the closing of the Offering.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.
About Sulliden Gold Corporation Ltd.
Sulliden is a mineral exploration and development company focused on advancing its flagship Shahuindo project to production. Currently in its permitting phase, this low cost heap leach gold and silver project is located in a prolific gold-producing district in northern Peru. A September 2012 Feasibility Study (based on $1,415 Gold and $27 Silver) on the foundation phase of the project estimates an initial CAPEX of $131.8 million that will support an annual mining rate of 3.65 million tonnes producing approximately 90,000 of gold equivalent ounces for 10.4 years at cash operating costs of $552/oz. This initial mine scenario features a pre tax IRR of 52.2% and post-tax IRR of 37.8%. The technical study considers only approximately 40% of the gold ounces from the total oxide mineral resource. Additional mineral resource growth is anticipated from a number of highly prospective exploration targets on the property that remain largely unexplored. Sulliden is led by a proven management team with hands-on experience developing and operating mines in Latin America.
Sulliden shares are listed on the Toronto Stock Exchange (TSX) under the symbol "SUE", on the Bolsa de Valores, Lima (BVL), also under the symbol "SUE", and on the premier tier of the U.S. Over-the-Counter market (OTCQX) under the symbol "SDDDF".
The technical information provided in this news release was reviewed and approved by Joseph C. Milbourne, Sulliden's VP Technical Services and Operations, and a qualified person for the purposes of National Instrument 43-101.
On behalf of Sulliden Gold Corporation Ltd.:
Chairman & CEO
President & Director
Cautionary statement regarding forward-looking information
This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the expected use of proceeds from the Offering, the size and quality of the company's mineral resources, progress in development of mineral properties, future capital and operating expenses, future metal prices, the future financial or operating performance of the Company, the prospective mineralization of the properties, planned exploration programs and anticipated production schedule. 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 is based on assumptions that have been made by the Company as at the date of such information, including those assumption described in the Company's technical report entitled "Technical Report on the Shahuindo Heap Leach Project, Cajabamba Peru", dated November 9, 2012, which is available at www.sedar.com. 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 annual information form 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 Gold Corporation Ltd.
For further information:
65 Queen Street West, Suite 800
Toronto, Ontario M2H 2M5
Telephone: +1 416 861-5805
Email: [email protected]
Calle San Martín 845, oficina 201
Miraflores - Lima 18
Telephone: 511 651-2500
Email: [email protected]