Santa Fe Metals Corp.

Santa Fe Metals Corp.

October 04, 2013 19:36 ET

Santa Fe Grants Stock Options

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 4, 2013) - Santa Fe Metals Corp. (TSX VENTURE:SFM)(the "Company") announces that it has granted an aggregate of 1,250,000 stock options (the "Options") to certain directors, officers and employees of the Company pursuant to the Company's stock option plan. The Options have an exercise price of $0.075 per share and an expiry date of October 4, 2018. In addition, the Options vest over a period of 18 months on the basis of one-third every six months.

The Company also wishes to provide an update with respect to its debt settlement transaction (the "Debt Settlement"), as more fully described in the Company's news release dated September 3, 2013. The Company had previously proposed to issue: (i) 1,499,996 units of the Company (the "Units") at a deemed issue price of $0.06 per Unit to certain arm's length creditors (the "Arm's Length Creditors"); and (ii) 4,680,692 common shares of the Company (the "Common Shares") at a deemed issue price of $0.05 per Common Share to certain non-arm's length creditors (the "Non-Arm's Length Creditors"). The Company has amended the terms of the Debt Settlement such that 1,800,000 Units were issued to the Arm's Length Creditors at a deemed issue price of $0.05 per Unit; the 4,680,692 Common Shares were still issued to the Non-Arm's Length Creditors at a deemed issue price of $0.05 per Common Share. The Company also announces that it received the approval of the TSX Venture Exchange with respect to the amended terms of the Debt Settlement.

In addition, the Company notes that, prior to completion of the Debt Settlement, Mr. Ian Smith, the Chairman of the board of directors of the Company, had ownership and control over 1,124,279 Common Shares, representing approximately 5.66% of the total issued and outstanding Common Shares. Following completion of the Debt Settlement, Mr. Smith has ownership or control over 3,529,215 Common Shares, representing approximately 13.39% of the total issued and outstanding Common Shares.

This news release contains forward-looking statements, including statements relating to the Company's future plans and objectives. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this news release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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