Sulliden Gold Corporation
TSX : SUE
OTCQX : SDDDF

Sulliden Gold Corporation

December 16, 2010 07:00 ET

Sulliden Announces Accelerated Expiry of Warrants for Possible Proceeds of Over $22 Million

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2010) - Sulliden Gold Corporation Ltd. ("Sulliden", the "Company") (TSX:SUE) (OTCQX:SDDDF) advises that it will be issuing notice of accelerated expiry to the holders of approximately 22,175,299 share purchase warrants of the Company (the "Warrants") which were issued pursuant to public offerings completed in October 2009 and April 2010. Each Warrant is exercisable to purchase one common share of the Company at a price of $1.00 per common share until October 6, 2012.

Pursuant to the terms of a warrant indenture governing the Warrants, the expiry of the Warrants may be accelerated at any time prior to the expiry of the Warrants if the daily volume weighted average trading price of the Common Shares on the Toronto Stock Exchange (the "TSX") was in excess of $1.50 for the twentieth consecutive trading day, at which time the Company may give notice to the Warrant holders that the Warrants will expire on the 30th day following receipt of the notice.

Effective at market close on Wednesday, December 15, 2010, the daily volume weighted average trading price of the Common Shares on the TSX was in excess of $1.50 for the twentieth consecutive trading day. A Notice of Acceleration dated December 15, 2010 will be mailed to Warrant holders to advise that the expiry date of the Warrants is being accelerated to 4 p.m. (Toronto time) on January 17, 2011 (the "Early Expiry Time"). Any Warrants remaining unexercised after the expiration of the Early Expiry Time will be cancelled and will thereafter be of no force or effect. 

Assuming all the Warrants are exercised, the Company will receive proceeds of approximately $22 million which will result in the Company's cash position exceeding $50 million. 

This additional capital will be used in part towards a significant 2011 exploration program outlined in a press release dated December 7, 2010, during which Sulliden plans, based on its exploration success, to nearly double the total meters drilled on the property since its discovery in 1992. The Company will also use the funds to complete all the necessary engineering and permitting studies required to develop the Shahuindo Gold Project.

On behalf of Sulliden Gold Corporation Ltd.,

Peter Tagliamonte, President and CEO 

Stan Bharti, Chairman

For further information on Sulliden please visit the company website at www.sulliden.com.

If you would like to be added to Sulliden's news distribution list, please send your email address to contact@sulliden.com.

Caution regarding forward-looking information:

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes without limitation, statements regarding the expected proceeds from exercise, the use of proceeds, the impact of the acceleration on the future financial or operating performance of the Company, the size and quality of the company's mineral resources, progress in development of mineral properties, future capital and operating expenses, capital and mine production costs, future metal prices and treatment and refining charges, the financial results of the company the future financial or operating performance of the Company, the prospective mineralization of the properties and planned exploration programs, the issue of permits, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, planned exploration programs, anticipated production schedule and terms and the availability and likelihood of future acquisitions. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; acquisition risks; and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Contact Information

  • Sulliden Gold Corporation Ltd.
    Caroline Arsenault
    Investor Relations Manager
    (416) 861-5805
    or
    Sulliden Gold Corporation Ltd.
    Scott Moore
    Vice President Corporate Development
    (416) 861-5903
    www.sulliden.com