BRIDGEWATER, NOVA SCOTIA--(Marketwire - Nov. 15, 2012) - Silver Spruce Resources Inc. (TSX VENTURE:SSE)(FRANKFURT:S6Q) comments on recent record trading levels, the company's current share price in light of the proposed private placement and its strategy going forward.
Record Trading Levels - In the period immediately following its October 22, 2012 news release announcing that the company would raise up to $1M through a private placement, Silver Spruce's shares have traded at record volumes and fallen to $0.02 from a range of $0.035 to $0.05 prior to the release. The majority of the approximately 18 million shares traded after October 22, 2012 traded anonymously, with every indication that they were related to one main seller. During this period, there were no fundamental changes in the company's projects or financial condition.
"The silver lining in the exit of one insider with a large share position is that that many buyers stepped in and purchased shares at a greatly reduced price, indicating their belief in the longer-term prospects and value of the company. I thank them for showing confidence in our company, as well as our many other shareholders for staying the course and taking a long-term view in tough times," says Peter Dimmell, President and CEO of Silver Spruce Resources Inc.
Status of Current Prospects - As indicated in recent news releases, exploration on the company's Big Easy gold /silver prospect on the island of Newfoundland is progressing well. Phase II drilling results have been reported and a 3D structural compilation of all drill results is underway. Preliminary airborne survey data has been received and the final data is expected soon - this will be integrated with the drilling and regional exploration to better define target areas for future exploration.
"Our team is systematically evaluating a promising epithermal-style gold/ silver prospect along a regional belt that is receiving significant exploration attention. Once we receive all data and complete compilation work, we will release that information along with details of our 2013 exploration and deep drilling program for the Big Easy prospect," says Dimmell.
The company also remains bullish on the medium to long-term outlook for uranium. Silver Spruce can hold the majority of its uranium claims in the Central Mineral Belt and elsewhere in Labrador for a number of years without requiring more exploration, until uranium prices rebound and conditions for raising exploration capital for uranium exploration are more favourable.
Status of the Private Placement - On October 22, 2012, Silver Spruce issued a news release indicating the Company would be proceeding with a private placement of units, consisting of shares at five cents and, depending on flow-through or non-flow through options, a half or full warrant. The Company believes that its shares are undervalued and is therefore not planning to change the conditions of the private placement at this time. "We believe it is prudent to see how our stock price recovers from the exit of the insider with the significant share position. While we will need to raise capital to fund our 2013 program at Big Easy, a private placement is not the only option we are pursuing," says Dimmell.
About Silver Spruce Resources Inc.
Silver Spruce is a diversified junior exploration company with a portfolio of gold/silver (Big Easy), uranium [Snegamook, A7 (Fishhawk Lake), Double Mer, Mount Benedict, CMBJV] and rare earth [Pope's Hill, Pope's Hill JV (with Great Western Minerals Group), MRT, RWM, Straits] projects in Newfoundland and Labrador. With interests in more than 4,000 claims totalling more than 1,000 square kilometres in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging uranium and rare earth districts. For additional information, please visit the Company's website - www.silverspruceresources.com.
This news release contains forward-looking statements that involve risk, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements reflect Silver Spruce's views with respect to future events (including the completion of the Offering and the intended use of proceeds) and there can be no assurances that such statements will prove to be accurate. There may be factors (such as, ability to obtain regulatory approvals or results of current exploration) that cause actions, events or results not to be as anticipated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Silver Spruce disclaims any intent or obligation to update any forward-looking statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The company seeks Safe Harbour.