EDMONTON, April 17 /CNW/ - Solid Resources Ltd. ("Solid" or the "Company") announces that it has closed a $125,000 debt financing (the "Loan"). Mr. Alvin Harter, a related party to the company, has lent $125,000 to the company pursuant to the terms of a non-convertible promissory note (the "Note"). The Note provides: (a) for interest at the rate of 12% per annum (interest for the first 3 month period, being of the term of the Loan, will be deducted from the principle amount); and (b) that the loan is payable on demand after 90 days written notice. The loan is backed by security against the Company's interest in the Bear Property, N.W.T.
The TSX Venture Exchange ("TSXV") has, pursuant to the correspondence dated April 15, 2008, conditionally accepted the Loan and the grant of security. The TSXV has advised that final acceptance will be issued upon receipt of executed copies of a signed copy of the directors' resolution and all corresponding documentation and the issuance of this news release. In addition, the Executive Director of the Alberta Securities Commission has, pursuant to correspondence dated April 15th, 2008, granted permission for the funding of the Loan directly to Solid.
The majority of the proceeds of the Loan will be used for expenses incurred for the Company's Spanish subsidiary, Solid Mines Espana S.A. regarding the Doade Presqueira Concession.
The company is actively exploring financings with non-related parties; however, the company was not able to complete a financing in a timely fashion. As such, the Board of Directors relied on its special committee (the "Special Committee"), consisting of independent Directors, to negotiate the terms of the Loan with Mr. Harter. The special committee and the board of directors unanimously concludes that the Loan was on commercially reasonable terms and would improve the financial position of the company.
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.
The TSX Venture Exchange has not reviewed or approved this press release,
and the Exchange does not accept responsibility for the adequacy or the
accuracy of this release.