VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2012) - Southern Silver Exploration Corp. (TSX VENTURE:SSV)(FRANKFURT:SEG) (the "Company") announces that it has entered into two loan agreements pursuant to which certain lenders (the "Lenders") will loan the Company an aggregate amount of $48,000 (the "Loans"). Each Loan is repayable on demand, provided that a Lender shall not make demand for repayment of its Loan before 6 months after the date of such Loan. Interest is payable quarterly at a rate of prime plus 2% per annum. At the election of the Company, interest may be paid by the issuance of common shares in accordance with the Policies of the TSX Venture Exchange. If, at the time a Lender makes demand for repayment of a Loan the Company is unable or unwilling, in its sole discretion, to repay the loan in cash, the Company may, subject to TSX Venture Exchange approval, repay the Loan by issuing common shares to the Lender.
As additional consideration of the Loans being granted, the Company has agreed to grant each Lender a bonus by way of issuing common shares in the capital of the Company equal to 10% of the loan amount divided by the discounted market price (the "Bonus Shares"). Accordingly, the Company will issue the Lenders an aggregate of 96,000 Bonus Shares at a deemed price of $0.05 per share. The Bonus Shares will be subject to a hold period of four months and a day from issuance.
The Loans and the issuance of the Bonus Shares are subject to the acceptance of the TSX Venture Exchange.
On behalf of the Board of Directors,
Lawrence Page, President, Southern Silver Exploration Corp.
For further information, please visit the Company's website at www.southernsilverexploration.com.
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.