Sierra Iron gets regulatory OK for Allen, Farm buys

Mar 23, 2016

SIERRA ANNOUNCES APPROVAL OF ALLEN AND FARM PROPERTY ACQUISITIONS AND PRIVATE PLACEMENT

Sierra Iron Ore Corp. has received regulatory approval for the acquisition of an initial 15-per-cent interest in the Allen property, described in the company’s news release dated Sept. 17, 2015. The company will make cash payments to Emerald Lake Development Corp. (ELD) totaling $2.11-million, conduct work programs totalling $1.5-million within 24 months and issue a total of 3.5 million shares. To earn up to an additional 36 per cent in the Allen property, additional share issuances must be made, which will be subject to separate exchange approval.

An initial one million shares have been issued to ELD at a price of 30 cents 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-per-cent interest in the Farm property described in the news releases dated May 27, 2015, July 29, 2015, and Sept. 17, 2015. The company will make cash payments to ELD totalling $510,000 and conduct work programs totalling $2-million within 36 months. An initial cash payment of $260,000 has been made to ELD.

The acquisition of the Allen and Farm properties complements the company’s previous acquisition in the Emo, Ont., 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 1.5 million units for total proceeds of $525,000.

Each unit will be priced at 35 cents, and will consist of one common share and one-half share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one additional common share at a price of 50 cents 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. Finders’ fees may be paid to qualified parties.

The private placement remains subject to TSX Venture Exchange approval.

http://www.sierrairon.com/news.html