SIERRA IRON ORE CLOSES 2ND TRANCHE OF PRIVATE PLACEMENT

Sep 10, 2013

Sierra Iron Ore Corp. has raised $510,000 in the second tranche of its non-brokered private placement, which will comprise 1,275,000 units. Each unit will consist of one common share, issued at a deemed value of 40 cents per share, and one-half of one common share purchase warrant, which may be exercised to purchase one additional common share at a price of 55 cents within 24 months from closing. Finders’ fees will be paid to qualified parties. All securities issued are subject to a hold period of four months from closing.

The total gross proceeds for the first and second tranches of the private placement will be $1,853,080, with a total of 4,632,700 units issued. The company intends to raise an additional $500,000 (1.25 million units) with the same terms as stated herein.

The proceeds of the private placement will provide working capital for the bulk testing plant operation at the El Creston iron ore property.

This second tranche of this private placement remains subject to regulatory approval.

The company has also granted 631,246 stock options to directors, officers and consultants under its stock option plan. The options may be exercised at a price of 40 cents for up to five years, subject to vesting restrictions and percentage limits imposed by regulatory requirements or the plan. The company has also applied to reprice 244,903 stock options previously granted on June 29, 2011, from a price of 80 cents to 40 cents.

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