NEWS RELEASE
July 29, 2015 Symbol:-TSX-V: NAA OTCQX: SIOCF SIERRA ANNOUNCES AMENDED OPTION AGREEMENT VANCOUVER, BC –Sierra Iron Ore Corp. ( “Sierra” or the "Company" ) announces that it has amended an option agreement (the “Option Agreement”), with Emerald Lake Development Corporation (“ELD”) to earn up to 92% of all mineral rights on Claim #4271029, which is located approximately 6 miles north of Emo, Ontario (the “Property”).
The original terms of the Option A greement specified that th e Company issue shares consisting of 19.9% of the Company’s issued and outstanding capital upon the receipt of a positive pre - feasibility study on the property (in order to earn a 50% interest), and issue shares having a value equal to the fair market valu e of the property upon the receipt of a positive feasibility study (in order to earn the other 42%) . There was also a required work commitment of $2,000,000 over two years.
The amended Option Agreement specifies that the Company pay to ELD for an initial undivided 50% interest in the Property:
- (i) $250,000 upon regulatory approval;
- (ii) $250,000 on or before one year after regulatory approval;
- (iii) 3,000,000 common shares upon regulatory approval; and
- (iv) 3,000,000 common shares no later than one year after the preceding share issuance.
The Company shall also be required to complete a work program having a cost of no less than $2,000,000 over the 24-month period following the date of the Option Agreement.
Provided that the Company completes the foregoing requirements to complete the purchase of 50% in the Property, for a period of 2- years from the date of earning Sierra will have a right of first refusal to purchase an additional 42% of the Property at a priced to be determined by an independent third party valuator.
CANADA USA
13236 Cliffstone Court #1021 – 100 East Street Lake Country BC V4V 2R1 Carefree, AZ 85377 Tel: 250-766-1517 Tel: 480-575-1220 Fax: 250-766-1839 Fax: 480-488-3492 www.sierrairon.com [email protected]
The Company will pay a finder’s fee of up to 433,721 shares with a value of $0.43 to Crystal Flabiano, an arm’s-length party.
The noted acquisition remains subject to Regulatory Approvals.
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 uncertaintie s not under the control of Sierra Iron Ore Corporation which may cause actual results, performance or achievements of Sie rra 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.
CANADA USA
13236 Cliffstone Court #1021 – 100 East Street Lake Country BC V4V 2R1 Carefree, AZ 85377 Tel: 250-766-1517 Tel: 480-575-1220 Fax: 250-766-1839 Fax: 480-488-3492 www.sierrairon.com [email protected]