Sierra Iron Ore arranges $250,000 debenture placement

May 28, 2015

EMO ACQUISITION AND CONVERTIBLE DEBENTURE FINANCING

Sierra Iron Ore Corp.’s previously announced option agreement, dated May 26, 2015, with Emerald Lake Development Corp. (entitling the company to earn up to 92 per cent of all mineral rights on claim No. 4271029, located about six miles north of Emo, Ont.), will require the company to issue shares consisting of less than 20 per cent of the company’s issued and outstanding capital upon the receipt of a positive prefeasibility study on the property (in order to earn a 50-per-cent interest), and issue shares having a value equal to the fair market value of the property upon the receipt of a positive feasibility study (in order to earn the other 42 per cent), all subject to regulatory approval. There is also a required work commitment of $2-million over two years.

The company also announces a private placement to a qualified investor of a convertible debenture with a value of $250,000. The debenture has a term to maturity of 18 months from issuance, will bear interest at 10 per cent and is convertible into common shares of the company (as to principal and/or interest) at a price of 30 cents per share, at any time prior to maturity. As at the date of this press release, the company had received the $250,000 subscription.

The proceeds of the 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 TSX Venture Exchange approvals.

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