Solid Enters Into Agreement to Sell Interest In Bear Property and Eliminates Debt
Apr 30, 2010
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EDMONTON, April 30 /CNW/ - Solid Resources Ltd. ("Solid" or the "Company") (TSX Venture: SRW) (Frankfurt: A0BLQQ) is pleased to announce that the Company has entered into a letter of intent (the "Letter of Intent") dated April 30, 2010 with Golden Lion Resources Inc. ("Golden Lion") with respect to the proposed transfer of all of Solid's 49% interest in the Bear mineral property located in the Northwest Territories (the "Bear Property") to Golden Lion. The purchase price for the 49% interest in the Bear Property is $3,000,000, and shall be payable: (i) by the assumption of debt (the "Assumed Debt") owing by Solid to certain lenders in the aggregate amount of $1,944,192.00; and (ii) by the issuance and delivery of common shares in the capital of Golden Lion ("Common Shares") having an aggregate value of $1,055,808.00, which Common Shares will be distributed to the shareholders of Solid in a tax effective manner. The actual number (not to exceed 2,000,000) and deemed price of the Common Shares shall be determined at or before the time of execution of the definitive agreement(s) for the proposed transaction.
Concurrently with the execution of the Letter of Intent, the Company entered into a debt assumption agreement, pursuant to which Golden Lion assumed the Assumed Debt effective as of the date hereof and the lenders released Solid from any further obligations under the Assumed Debt.
The Board of Directors of Solid have unanimously approved the Letter of Intent and the proposed sale of Solid's 49% interest in the Bear Property. The completion of the proposed transaction is subject to a number of conditions including, negotiation and execution of definitive agreements, receipt of all requisite regulatory approvals, including the TSX Venture Exchange, receipt of the requisite level of approval of the holders of Solid's common shares, if required, and if the proposed transaction proceeds by way of a plan of arrangement, the approval of the applicable court.
Mr. Joerg Schuetz, CEO stated, "The elimination of this debt has positioned the Company with a clean balance sheet to effectively move forward and allow the Company to remain focused on our Alberta 1 (Doade-Presqueira) concession located in Spain. I am very encouraged by the results of our previously released (NI) 43-101 technical report. The Company is very motivated to commence the 34 hole drill program this spring."
Mr. Max Hare, President stated, "The three year renewal of Solid's Alberta-1 Exploration Permit in North-West Spain has just been approved by the regional government, the Xunta de Galicia, and the terms of the environmental bond have been agreed. Under Solid's new management, I am delighted that our vital work on the tantalum-tin deposit is now going ahead. A campaign to drill 4,400 m with core recovery is already under way. Encouraging grades of lithium have also been found in previous campaigns and these will also be studied very closely in the coming program, along with the possibility of producing sodium feldspar as a by-product."
Certain statements contained in this press release, including statements which are related to exploration activity and future prospects and profitability and which may contain words such as "could", "should", "expect", "believe", "will" and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances and/or achievements of Solid to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include fluctuations in the market conditions and prices of tantalum, lithium, tin, silver and other metals and related products and services; competition; political and economic conditions in countries in which Solid does business; changes in laws and regulations, including environmental regulations, to which Solid is subject, and other factors which are described in further detail in Solid's filings with the Canadian Securities Regulators.
Neither the 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.