VANCOUVER,
Feb. 22, 2013 /CNW/ - Salmon River Resources Ltd.
(TSX.V: SAL) (together with its subsidiaries individually
and jointly referred to as "Salmon
River" or the "Company") wishes to provide an
update on the current status of the Company, its financial position
and ongoing negotiations.
Salmon River
has been involved for some months in negotiations with an
investment group regarding several stages of funding and has
recently completed arrangements for an initial funding (the
"Initial Funding"). The Initial Funding, when and if
completed, will be sufficient for the Company to meet all its
current financial commitments, including the Pre-Completion Payment
of AUD4 million payable as of 15 December
2012 in respect of its previously announced acquisition of
all the outstanding shares of Treppo Grande Iron Pty. Ltd.
("TGI") (See our Press Release of 25
October 2012), payment of all outstanding accounts payable
of the Company and funding of current exploration and operating
expenses.
As completion of the Initial Funding has taken
longer than expected and beyond the due date for the Pre-Completion
Payments, Salmon River has been in
on-going discussions with the vendor of TGI (the "Vendor").
Salmon River fully expects to be
in a position to cover the Pre-Completion Payment and accrued
interest charges assuming receipt of the Initial Funding.
The Company has also been in discussion with its
existing creditors regarding its obligations to them and fully
expects to pay all outstanding balances shortly on receipt of the
Initial Funding. While a small number of creditors have
threatened legal proceedings and one creditor has taken steps to
commence proceedings against a wholly owned subsidiary in
Australia, the Company would
expect that all such claims would be paid in full upon receipt of
the Initial Funding.
Salmon River
also wishes to advise that it is fully compliant with all
outstanding filings in respect of its obligations on the TGI
tenements and intends to recommence exploration activities on the
project upon receipt of the Initial Funding.
Salmon River
expects that the Initial Funding will be completed based on
representations and negotiations with the investment group's
representatives. However, no assurances can be given by the
Company that the Initial Funding will be completed and all claims
settled on a timely basis.
Salmon River
expects to be in a position to make further disclosure upon
anticipated completion of the Initial Funding.
ABOUT SALMON
RIVER RESOURCES LTD.
Salmon River Resources Limited (TSXv:
SAL) is a mineral exploration company engaged in the exploration
for and development of commercial deposits of iron ore in
Western Australia. It exercised
its option to acquire five tenements in the Yilgarn region of
Western Australia including the
Treppo Grande iron ore project, approximately 210 kilometres
northwest of Kalgoorlie, comprising three tenements covering
approximately 396.7 km2. Completion of the acquisition
of the tenements is subject to certain conditions, including cash
payments and issuance of shares to the Vendor. For further
information visit our website at www.salmonriver.com.au.
Forward-Looking Statements:
This press release contains forward-looking
statements that are based on the beliefs of management and reflect
Salmon River's current
expectations. This press release relates to a significant set
of financings and completion of the acquisition of the Treppo
Grande Iron Pty Ltd, further exploration and future financing
requirements. The forward-looking statements are based on
certain assumptions, which could change materially in the future,
including the assumption that the transactions and financings
contemplated herein will be completed, that Salmon River will be able to settle its
trade payables, that Salmon River
will be able to complete on its acquisition of TGI and that the
Treppo Grande property will ever be developed. By their
nature, forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking information. Such factors
include the risk that funds may not be advanced under the Initial
Funding, the definitive financing agreements may not be completed,
that Salmon River may not be able
to satisfy the claims of its creditors, that Salmon River may not complete the financings
in the amounts required and that the Company may not complete on
its acquisition of TGI. There can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, investors should
not place undue reliance on forward-looking information.
Forward-looking information is provided as of the date of this
press release, and the Company assumes no obligation to update or
revise them to reflect new events or circumstances, except as
required in accordance with applicable laws.
Statements in this release that are
forward-looking statements are subject to various risks and
uncertainties concerning the specific factors disclosed under the
heading "Risk Factors" and elsewhere in the Company's periodic
filings with Canadian securities regulatory authorities. Such
information contained herein represents management's best judgment
as of the date hereof based on information currently
available. The Company does not assume the obligation to
update any forward-looking statement.
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
SOURCE Salmon River Resources Ltd.