Sierra Announces Approval of Allen and Farm Property Acquisitions and Private Placement
NEWS RELEASE March 21, 2016 Symbol:-TSX-V: NAA
SIERRA ANNOUNCES APPROVAL OF ALLEN AND FARM PROPERTY ACQUISITIONS AND PRIVATE PLACEMENT
Vancouver, BC – SIERRA IRON ORE CORPORATION (“Sierra” or the “Company”) is pleased to announce that it has received regulatory approval for the acquisition of an initial 15% interest in the Allen Property, described in the Company’s news release dated September 17, 2015. The Company will make cash payments to Emerald Lake Development Corporation (“ELD”) totaling $2,110,000, conduct work programs totaling $1,500,000 within 24 months and issue a total of 3,500,000 shares. To earn up to an additional 36% in the Allen Property, additional share issuances must be made which will be subject to separate Exchange Approval.
An initial 1,000,000 shares have been issued to ELD at a price of $0.30 per share. All shares issued will be subject to a four-month hold period expiring July 16, 2016.
The Company has also received regulatory approval for the acquisition of an initial 50% interest in the Farm Property described in the news releases dated May 27, 2015, July 29, 2015 and September 17, 2015. The Company will make cash payments to ELD totaling $510,000 and conduct work programs totaling $2,000,000 within 36 months. An initial cash payment of $260,000 has been made to ELD.
The acquisition of the Allen and Farm Property complement the Company’s previous acquisition in the Emo, Ontario area.
The Company also announces that it has arranged a non-brokered private placement to qualified investors. The private placement financing will consist of up to 1,500,000 units (“Units”) for total proceeds of $525,000.00
Each Unit will be priced at $0.35 and will consist of one common share and one-half share purchase warrant (each whole share purchase warrant being a “Warrant”). Each whole share purchase Warrant will entitle the holder to purchase one additional common share at a price of $0.50 per share for a period of 24 months from the closing date.
The proceeds of this private placement will be used to advance exploration on the Company’s Canadian properties and for general working capital purposes.
All securities issued will be subject to a four-month hold period from closing. Finder’s fee may be paid to qualified parties.
The private placement remains subject to TSX Venture Exchange approval.
About the Company
Sierra is a mineral exploration company focused on creating value through the exploration and development of its British Columbia and Ontario mineral properties. Sierra is presently conducting a stage 1 drilling program in and around Emo, Ontario.
On behalf of The Board of Directors of Sierra Iron Ore Corporation.
Wally Boguski
President & CEO
This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Sierra Iron Ore Corporation which may cause actual results, performance or achievements of Sierra Iron Ore Corporation to be materially different from the results, performance or expectation implied by these forward looking statements.
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.