SOURCE: Sarissa Resources, Inc
OAKVILLE, ON--(Marketwire - Sep 19, 2012) - Sarissa Resources Inc. ("Sarissa") (PINKSHEETS: SRSR), and its wholly owned subsidiaries, Nio-Star Corp. ("Nio-Star" or "the Company"), and Shining Tree Resources Corp. ("Shining Tree"), are pleased to announce the closing of a financing of both flow-through and common share units (the "Units"), and the completion of an updated Technical Report for Shining Tree.
The Units consist of one common share and one common share purchase warrant of Sarissa and were sold at a unit price of two cents per share. The common share purchase warrants are exercisable into one common share of Sarissa for a period of two years at an exercise price of three cents. The Units were sold under applicable securities laws on a private placement basis, and the resulting Shares and warrants are therefore subject to a minimum four month hold period under applicable Canadian securities laws, as well as any longer hold period that may be prescribed under U.S. securities laws. Total proceeds of the financing were $447,500 through the placement of 22,375,000 Units at a price of $0.02 per Unit.
Proceeds from the financing are targeted toward reducing long-term debt and current payables, as well as for funding exploration expenses and general working capital purposes, including the legal and accounting work necessary to move Sarissa toward the "Current Information" tier through OTC Markets. These funds will also be available to finance continued operations while arrangements are pursued to establish the anticipated new Joint Venture that was previously announced on August 27, 2012.
As previously released, Nio-Star has entered into a Letter of Intent to form a Joint Venture company to finance the advanced exploration of Nio-Star's niobium property in Northern Ontario. As this progresses Sarissa also expects to be in a position to announce an ex-dividend date for the previously announced and shareholder approved spin-out transaction of its Shining Tree Resources Corp. subsidiary.
In addition, an updated independent Technical Report has been prepared for the Shining Tree property following further diamond drilling and a Deep Gradient Induced Polarization Survey. Sarissa and Shining Tree anticipate that the report will be released and filed on SEDAR within the next week.
Dr. Cam Cheriton, Ph.D, P.Eng, a director of Sarissa, is a "qualified person" within the meaning of National Instrument 43-101 and has read and is responsible for the technical information contained in this news release.
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Sarissa Resources Inc. and Nio-Star Corp., as well as members of their respective management, in addition to the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. Neither Sarissa nor Nio-Star undertakes any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
About Sarissa Resources Inc.
Sarissa Resources Inc. is a junior exploration company with interests in properties in Northern Ontario, Canada. The Company is specifically focused on the development of its Nemegosenda niobium project as well as its Shining Tree gold project.