Final Tranche of Non Flow-Through Unit Placement Completed
Diamond Drilling to Commence on Cry Lake Gold Project
Armstrong, B.C. - Friday, September 18th, 2009. Solomon Resources Limited (SRB: TSX-V) proposes to raise $325,000 through a private placement of up to 1,547,617 units at $0.21 per unit from the MineralFields Group. Each unit will consist of one flow-through common share and one transferable share purchase warrant. Each warrant will be exercisable to purchase a further (non-flow-through) common share for two years at $0.30 in the first year and $0.40 in the second year. On closing, which is scheduled for Wednesday, September 23rd, a 5% finder's fee will be paid in cash and a finder's warrant to purchase up to 154,762 units (10% of the units sold) at a price of $0.21 per unit for a period of two years issued to Limited Market Dealer Inc. of Toronto, Ontario in consideration of its efforts in respect of the placement. About MineralFields, Pathway and First Canadian Securities: MineralFields Group (a division of Pathway Asset Management), based in Toronto and Vancouver, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities. The proceeds of this placement will be used to fund exploration of Solomon's British Columbia and Yukon properties with at least $100,000 being spent in British Columbia to qualify for the 20% BC Tax Credit.
Solomon's President and CEO Randy Rogers noted: "We are very pleased to continue our relationship with MineralFields Group at this early stage of our development of new projects in British Columbia and the Yukon Territory."
Final Tranche of Non Flow-Through Unit Financing Completed:
Solomon is also pleased to announce that it has completed the second and final tranche of its (non 'flow-through') unit private placement by issuing 320,000 units at $0.25 per unit. Each unit consisted of one common share and one-half of one transferable share purchase warrant. Each whole warrant is exercisable to purchase a further common share for $0.50 until September 4th, 2010. The shares issued, and any shares issuable upon exercise of the warrants, are subject to restrictions on transfer until January 5th, 2010. The total proceeds raised under the placement were $259,000.
Rogers observed: "The proceeds of the flow-through financing and the private placement will allow us to meet our immediate needs for exploration capital without excessive dilution of our share capital."
Diamond Drilling Permits Received for Cry Lake Gold Project:
Solomon is very pleased to report that work permits have now been received from the British Columbia Ministry of Energy Mines and Petroleum Resources (MEMPR) to allow the company to launch the diamond drill program planned for the Cry Lake Gold Project 80 kilometers northeast of Dease Lake. The Company has contracted the 2009 diamond drill program to Atlas Drilling Ltd. and equipment and drill crews are now mobilizing to the property.
Solomon's field crews have for the past few weeks been carrying out geological mapping and soil geochemical surveys on the property and the collar locations for the drilling program have been surveyed. The 2009 diamond drill program will test the Discovery Vein at depth.
As the exploration program continues further exploration will be conducted along strike extensions of the known mineralization to identify prospective targets for epithermal and intrusion-related gold-silver polymetallic veins and to investigate the potential for syngenetic massive sulphide occurrences associated with pyrite-garnet-bearing exhalative metachert horizons.
The geological setting in which the Cry Lake Property is located is highly correlative with that of the Yukon-Tanana Terrane and recent work by the British Columbia Geological Survey suggests that potential exists for further epithermal and intrusion related gold discoveries in adjacent portions of the Cry Lake Map Sheet.
Solomon's President Randy Rogers observed: "We are very pleased with the support we have received from the permitting staff of MEMPR and the spirit of cooperation that has been established with local First Nations interests. As our exploration program advances we will continue to engage the local community to maximize opportunities for First Nations involvement and long term economic benefit."
"We continue to evaluate other projects and have a number of gold properties in the Yukon Territory and Northern British Columbia under review. The announcement this week of federal funding for the Northwest Transmission Line which will extend the high voltage power grid into northwestern British Columbia will greatly improve the economics of exploration in this region."
About Solomon Resources Ltd.:
Solomon Resources Ltd. is a Canadian public company focused on the acquisition, exploration and development of quality mineral properties worldwide. Solomon is managed by a proven team of exploration geologists involved with the discovery and/or development of a number of significant deposits in the world, including the Snip, Eskay Creek, and Brewery Creek deposits in Canada; the Segala gold deposit in Mali; the Chimney Creek, Mule Canyon, Ruby Hill, Mesquite, and Ortiz gold deposits in the United States, the Gosowong deposit in Indonesia and the Cadia East deposit in Australia.
Solomon is currently focused on the exploration of gold projects in British Columbia and the Yukon Territory, a tin project in Alaska and uranium projects in Mongolia. Solomon's shares trade under the banner SRB on the TSX Venture Exchange (TSX-V).
For additional information visit Solomon's website at www.solomonresources.ca or contact:
Randall S. Rogers, President and Chief Executive Officer
Phone: 250-546-4772
Tollfree: 1-866-831-6666
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accept responsibility for the adequacy or accuracy of this release.
|
