SL Resources Inc.

November 16, 2010 13:37 ET

SL Resources Inc. Announces Closing of Non-Brokered Financing

TORONTO, ONTARIO--(Marketwire - Nov. 16, 2010) - SL Resources Inc. ("SL Resources" or the "Corporation")

SL Resources announces the completion of the sale of 1,800,000 common shares at US$0.25 per share to arm's length subscribers for gross proceeds of US$450,000 pursuant to a non-brokered private placement.

This private placement was announced in the Corporation's press release of November 11, 2010 in which the Corporation advised that it has entered into a binding pre-acquisition agreement with LLC UK Dalsvetmet ("DZM"), an arm's length private Russian Federation corporation, pursuant to which SL Resources will acquire (the "Acquisition") four wholly-owned subsidiaries of DZM and DZM's entire 80% interest in a fifth subsidiary. The proceeds of the private placement will be applied to working capital and to fund the Corporation's obligations pursuant to the Acquisition. In particular, in the event that either party decides not to proceed with this acquisition, SL Resources will be required to pay a break fee of US$450,000 which it would fund using proceeds from the non-brokered private placement.

Immediately before completion of the private placement, the Corporation had 3,000,000 common shares issued and outstanding. As a result of the issuance of 1,800,000 common shares pursuant to the private placement, the Corporation now has 4,800,000 common shares issued and outstanding. The common shares issued on the private placement are subject to a four-month hold period. 

WARNING: This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the future plans and objectives of SL Resources, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from SL Resources' expectations are detailed in the filings made by SL Resources with securities regulators.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • SL Resources Inc.
    Dennis H. Peterson
    Director
    416-777-6772
    dhp@petelaw.com