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News Releases
| | May 06, 2007
Sterling Closes Private Placement for US$1,800,000
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| | Wallace, Idaho - May 6, 2007 - (BUSINESS WIRE) - Sterling Mining Company (OTCBB: SRLM) (the "Company") announced today that it raised, from its April 30, 2007 closing, gross proceeds of US$1,800,000 by way of a non-brokered private placement offering consisting of 500,000 units ("Units") at a price of US$3.60 per Unit (the "Offering"). Each Unit is comprised of one common share of the Company ("Common Shares") and one-half of one common share purchase warrant (the "Warrants"). Each warrant is exercisable for one common share at an exercise price of US$4.50 for 24 months following the closing date of the Offering.
Proceeds from the private placement will be used to fund the ongoing rehabilitation and upgrade of the Sunshine Mine as part of Sterling's mine plan to resume silver production there in December 2007, and for general working capital purposes.
In connection with the private placement, the Company paid a finder's fee of 7.0% of the gross proceeds of the offering by issuing 35,000 Units to Blackmont Capital Inc. and TD Securities Inc. of Toronto, Canada.
The Company also reported, further to its 8-K SEC filing dated April 25, 2007, that so far in 2007 $809,756.25 has been raised from warrant holders who have exercised outstanding warrants to purchase a total of 215,935 common shares from the treasury.
The private placement and warrant exercise were made in transactions exempt from the registration requirements of the Securities Act of 1933. The securities sold have not been registered under the Securities Act of 1933, or any state securities laws, and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws.
About Sterling Mining Company
Sterling Mining controls the Sunshine Mine, currently forecasted to begin production in December 2007, and related exploration lands in the prolific Silver Valley of northern Idaho. The Company also holds several silver properties in Mexico, including the Barones Tailings Project in the Zacatecas Silver District. Shares of Sterling Mining Company trade on the OTC Bulletin Board under the symbol "SRLM" and also on the Frankfurt Stock Exchange under the trading symbol "SMX".
FOR FURTHER INFORMATION, visit the Company's website at www.SterlingMining.com or contact:
Sterling Mining Company
www.SterlingMining.com
Raymond De Motte, President or
Monique Hayes, Marketing/Communications
Tel: (208) 699-6097
CHF Investor Relations
www.chfir.com
Cathy Hume, CEO
Tel: (416) 868-1079 x231
cathy@chfir.com
To receive Sterling news via email, please email julia@chfir.com and specify "SRLM news" in the subject line.
This press release does not constitute an offer to sell or a solicitation to buy securities, and contains forward-looking statements regarding the Company within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements are based on assumptions that the Company believes are reasonable but that are subject to uncertainties and business risks. Actual results relating to any and all of these subjects may differ materially from expected results. Along with additional underground rehabilitation and restoration of site facilities, the timetable for the continuing work program anticipates production beginning in December 2007. If we are able to stay on schedule with the mine work and obtain the funding, equipment, and qualified operations personnel as needed for the work program, we believe production by December is doable. Factors that could cause results to differ materially include economic and political events, the ability to raise capital in the financial markets, and other factors discussed in the Company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2006 and subsequent 10-Q and 8-K filings. |
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