VANCOUVER, June 14, 2011 /PRNewswire/ - Sierra Iron Ore Corp. is pleased to announce that it has received subscription agreements totaling 3,538,581 units on its first tranche of the non-brokered private placement offered to qualified investors for gross proceeds to the company of $2,830,865. Each unit was issued at a price of $0.80 cents per unit; each unit is comprised of one common share and one-half of one share purchase warrant. The terms of the warrant entitles the holder to acquire one additional share at a price of $1.00 for a period of 24 months from closing. All securities issued are subject to a hold period of four months from closing. Finders' fees will be paid to qualified parties.
The private placement will provide the necessary working capital to fund the next stage of development of the El Creston property. A portion of the proceeds from the private placement will also be used to satisfy the company's near-term obligations under the El Creston option agreement. "We are very excited to begin the next phase of development on the El Creston property and look forward to announcing the results of our drill program this summer," Wally Boguski, President of Sierra Iron Ore.
About Sierra Iron Ore
Sierra Iron Ore is a growth focused mineral exploration company creating value through the exploration and development of the El Creston property located in the Sinaloa State of Mexico. The company has a continual fieldwork program at the El Creston Property that is comprised of mapping, sampling and planning for further property development. Roads are being built and upgraded as well as equipment is being purchased in preparation for further developing the known iron ore mineral zones identified by recent exploration work.
On behalf of The Board of Directors of Sierra Iron Ore Corporation.
Paul Lee, Director
This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Sierra Iron Ore Corp. which may cause actual results, performance or achievements of Sierra Iron Ore Corporation to be materially different from the results, performance or expectation implied by these forward looking statements. 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 press release, which has been prepared by management.
SOURCE Sierra Iron Ore Corporation