TORONTO , Sept. 5, 2014 /CNW/ - Sulliden Mining Capital Inc. (SMC.TO) ("Sulliden" or the "Company") announces that by share purchase agreement with QMX Gold Corporation (QMX:TSXV), it has agreed to acquire 1,180,505 common shares (the "Purchased Shares") of Falco Resources Ltd. ("Falco") at $0.45 per share for an aggregate purchase price of $531,227.25 , representing approximately 1.6% of the issued and outstanding common shares of Falco.
In addition, Sulliden intends to acquire, subject to the policies of the TSX Exchange, an additional 965,868 common shares (the "Escrowed Shares") of Falco that are subject to an escrow agreement at a price of $0.27 per common share.
Investment
Neither Sulliden, nor any other persons acting jointly or in concert with Sulliden, previously held any other securities of Falco.
Sulliden intends to hold the Falco common shares for investment purposes. Other than the Purchased Shares and the Escrowed Shares, Sulliden has no current intention to increase the beneficial ownership of, or control or direction over, additional securities of Falco.
About Falco Resources Ltd.
Falco is a resource exploration company and owner of mineral rights to 14 former mines within a 700 km2 land package in the Abitibi region of Québec, Canada . Falco's principal property is the Horne mine complex, which was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. A maiden 43-101 mineral resource estimate for the Horne 5 deposit delineated an initial inferred resource totaling 25.3 million tonnes grading 2.64 g/t Au, 0.23% Cu and 0.7% Zn, for 2.2 Moz Au contained (see Falco's press release dated March 4, 2014 for more details).
About Sulliden Mining Capital
Sulliden Mining Capital is a venture capital company focused on acquiring and advancing brownfield, development-stage and early production-stage mining projects in the Americas.
Sulliden Mining Capital Inc. On behalf of the Board
"Justin Reid"
President & Chief Executive Officer
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 acquisition of Falco common shares, future capital and operating expenses, future metal prices, the future financial or operating performance of the Company, the prospective mineralization of any properties to be acquired by the Company, and anticipated acquisitions. 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 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 Mining Capital