Sierra Signs JV with Emerald Lake Development Corp. and Announces Private Placement
NEWS RELEASE
July 24, 2014 Symbol:-TSXV.NAA Symbol:-OTC- SIOCF SIERRA SIGNS JV WITH EMERALD LAKE DEVELOPMENT CORP. AND ANNOUNCES PRIVATE PLACEMENT
VANCOUVER, BC – Sierra Iron Ore Corporation (the “Company”) is pleased to announce the signing of a definitive joint venture agreement (the “JV Agreement”) with Emerald Lake Development Corporation (“ELD”). Subject to the terms of the JV Agreement, the Company will have the right to earn up to a sixty (60%) percent interest in the iron ore and gold mineralization located on the Emerald Lake property (the “Property”) located 3.5 miles north of the town of Emo, Ontario.
The acquisition terms require: $5,000 (all funds CDN) to be paid upon execution; $50,000 to be paid on or before 30 days after TSXV approval; $200,000 to be paid on or before the first (1st) anniversary of TSXV Approval; 3,000,000 common shares within 5 days of TSXV approval; 3,000,000 common shares on or before 6-months after TSXV approval; and 3,000,000 common shares Shares upon the earlier of the presentation to the parties of a positive Feasibility Study respecting the Property, or the Commencement of Commercial Production.
The Company will also be required to make exploration expenditures over 24-months of a minimum of $2,000,000.
On or before the Commencement of Commercial Production on the Property, the Company shall have the right and option to acquire an additional thirty-two (32%) percent undivided interest in the Property, or the entire remaining interest of ELD in the Property at such time (if less than thirty-two (32%) percent), by issuing additional cash and/or shares to ELD based on a mutually agreed upon evaluation, as well as a right of first refusal excluding property that ELD has an interest in at the date of the JV Agreement. If ELD or any affiliate acquires any additional interest in mineral properties in the Province of Ontario containing iron ore mineralization (including iron ore containing gold), ELD will immediately provide notice of such acquisition to the Company and the Company will thereupon have sixty (60) days to acquire the property on terms no less favourable than would be offered in good faith to an arm’s length third party.
The Property consists primarily of an approximately kilometre long segment of a linear tabular body existing along a strike length of approximately 31 kilometres. The area has been shown by detail ground magnetics to possess width regularity and the mineralized zone is hosted by clastic sediments, representing a portion of the Richardson trough. An anticlinal fold has been decapitated by erosion so as to expose an underlying noritic (laccomorphic) layered complex. Thermal effects attributed to the emplacement of the complex, have yet to be determined. The presence of nearby outcropping of bedrock suggests the presence of variable to manageable thicknesses of overburden.
The Company is also pleased to announce that it has arranged a non-brokered private placement to qualified investors. The Private Placement financing will consist of 3,000,000 units (“Units”) for total proceeds of $450,000.
Each Unit will be priced at $0.15, and will consist of one common share and one warrant (a “Warrant”). Each Warrant shall entitle the holder to purchase one additional common share at a price of $0.20 per share, with an expiry date which is 24 months from closing.
The proceeds of this private placement will be used to advance exploration activities at the Property and for general working capital purposes.
The noted acquisition and private placement remain subject to TSXV approvals. Finder’s fee may be paid in cash or shares to qualified parties within the parameters allowed by the TSXV.
The information contained in this news release has been prepared by consultant Dr P.
Fischer (FPF Services Inc.), who is a Qualified Person under the definitions established by National Instrument 43 – 101.
For more information contact Corey Safran, at 609-228-0595, or by email at: Corey Safran [email protected]
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 Corp. 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.
CANADA USA 13236 Cliffstone Court #2 – 701 West Deer Valley Road Lake Country BC V4V 2R1 Phoenix, AZ 85027 Tel: 250-766-1517 Tel: 623-251-4443 Fax: 250-766-1839 Fax: 623-251-4878
www.sierrairon.com [email protected]