Sulliden Announces Strategic Investment by Agnico-Eagle Mines Limited

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TORONTO, April 9, 2013 /CNW/ - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX: SUE) (BVL: SUE) (OTCQX: SDDDF) announces that Agnico-Eagle Mines Limited ("Agnico-Eagle") has entered into a subscription agreement to make a strategic investment of $24,000,000 into Sulliden through a non-brokered private placement of units. As a result of the transaction, Agnico-Eagle will own 9.96% of Sulliden's issued and outstanding shares on a non-diluted basis.

Under the terms of the subscription agreement, Agnico-Eagle will purchase a total of 26,966,292 units at a price of $0.89 per unit.  Each unit is comprised of one common share and 0.7 of a common share purchase warrant.  Each whole share purchase warrant will entitle Agnico-Eagle to acquire one common share of the Company at a price of $1.31 for a period of two years from the date of issuance.  In the event that all warrants are exercised, an additional $24.73 million will be raised.

Sean Boyd, President and CEO of Agnico-Eagle commented, "Our investment highlights the quality and potential of Sulliden's Shahuindo Project. We also view this as an opportunity to gain exposure to another jurisdiction with a well-established mining culture.  We look forward to participating in the advancement of Shahuindo towards production."

Peter Tagliamonte, Chairman and CEO of Sulliden, commented "We are very pleased to welcome Agnico-Eagle as a strategic shareholder.  Agnico-Eagle is a world-class mining company and a leader in corporate social responsibility with a proven track record of excellence in the development and operation of global mines.  Agnico-Eagle was very thorough with its technical review and we believe this investment represents a strong endorsement of the quality and potential of the Shahuindo Project.  We look forward to the continued positive development of our project with the ongoing participation of local communities, municipalities and government departments.  The $24 million investment by Agnico-Eagle, in conjunction with the previously announced debt facility of $125 million, puts us in a strong financial position to advance Shahuindo."

The closing of the private placement is expected to occur on or about April 12, 2013 and is subject to all necessary regulatory approvals. The common shares issuable pursuant to the offering (including the common shares issuable upon the exercise of the warrants) are subject to a mandatory four-month hold period. Upon closing of the private placement, subject to certain conditions, Agnico-Eagle will have the right to participate in any future equity offerings by the Company in order to maintain its pro rata investment in the Company.

The Company intends to use the proceeds of the transaction to fund the development of the Shahuindo Project and for general working capital purposes.

Sulliden's Shahuindo Project is located in a world-class gold producing belt in northern Peru.  In September 2012, the Company completed a Feasibility Study highlighting a straightforward open pit mine with heap leach recovery.  The capital requirement of the mine is an estimated $131.8 million, which would support a mining rate of 3.65 million tonnes per year and annual production of approximately 90,000 gold equivalent ounces at average cash operating costs of $552 per ounce.

Qualified Person

Joe Milbourne, Vice President of Operations and Technical Services for Sulliden is the Company's designated Qualified Person for the purposes of the Feasibility Study.  Mr. Milbourne has reviewed and approved the scientific and technical contents of this press release.

About Sulliden

Sulliden Gold Corporation Ltd. is a Canadian precious metals company focused on the exploration and development of its wholly owned gold and silver Shahuindo Project, located in a prolific gold producing district in northern Peru.  Sulliden is listed on the Toronto (TSX) and Lima (BVL) stock exchanges under the symbol "SUE", as well as the premier tier of the U.S. Over-the-Counter (OTC) market (OTCQX) under the symbol "SDDDF".  For more information about Sulliden, please visit www.sulliden.com.

On behalf of Sulliden Gold Corporation Ltd.:

Peter Tagliamonte
Chairman & CEO

Justin Reid 
President

Caution regarding forward-looking information:

These securities being offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from registration requirements. This release does not constitute an offer for sale of securities in the United States.

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the terms and use of proceeds of the private placement, the ability of the Company to complete the private placement, the impact of the private placement on the Company, the receipt of all required regulatory approval, the closing date of the private placements, next steps for the property, progress in development of mineral properties, projected capital and operating expenses, future metal prices, the future financial or operating performance of the Company and anticipated production schedule. 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; other risks of the mining industry and the risks described in the annual information form of the Company. 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.

 

 

SOURCE: Sulliden Gold Corporation Ltd.

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