/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES./
TORONTO, July 30, 2014 /CNW/ – Sulliden Gold Corporation Ltd. (“Sulliden“, or the “Company“) (TSX: SUE) (BVL: SUE) (OTCQX: SDDDF) is pleased to announce the
Toronto Stock Exchange (“TSX“) has conditionally approved the listing of the common shares (“SpinCo Shares“) of the Company’s wholly-owned subsidiary, Sulliden Mining Capital
Inc. (formerly 2422222 Ontario Inc.) (“SpinCo“). SpinCo will trade under the ticker symbol: SMC.
As part of a plan of arrangement between Rio Alto Mining Limited (“Rio Alto“), the Company, and SpinCo pursuant to an arrangement agreement dated
June 13, as amended (the “Arrangement“), it is expected that current shareholders of Sulliden will receive
0.1 of one SpinCo Share for each common share of Sulliden held. The
effective date of the Arrangement is expected to be August 5, 2014. As
part of the Arrangement, Sulliden will convey the claims composing its
East Sullivan property near Val d’Or, Québec to SpinCo. For more
information with respect to the Arrangement and the business of SpinCo
upon completion of the Arrangement, see the management information
circular of the Company and joint management information circular
supplement of the Company and Rio Alto dated June 26, 2014, available
under the Company’s profile on SEDAR at www.sedar.com
The continued listing of the SpinCo Shares will be conditional upon,
among other things, the “market value” of the SpinCo Shares not being
less than $20 million for any consecutive 30 day period during the
first three months from the date of listing. The “market value” will be
determined with reference to the number of issued and outstanding
SpinCo Shares listed on TSX multiplied by the volume weighted average
trading price of the SpinCo Shares on the TSX for the five trading days
prior to the relevant calculation date. If the “market value” is less
than $20 million for any such consecutive 30 day period within the
three months from the date the SpinCo Shares are first listed, the
Company will proceed to de-list the SpinCo Shares from the TSX. Should
this occur, Sulliden expects SpinCo would seek an alternative listing
for the SpinCo Shares.
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.
About Sulliden Mining Capital Inc.
Sulliden Mining Capital Inc. is a venture capital company focused on
acquiring and advancing brownfields, development-stage and early
production-stage mining companies in the Americas.
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 completion and timing of the Arrangement, the listing and
trading of the SpinCo Shares, the potential listing of SpinCo Shares
using a listing vehicle other than the TSX, the future activities of
SpinCo, the size and quality of Sulliden’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.
