TSX: SRZ (Cmn Shs)
SRZ.NT (Notes)
SRZ.NT.A (Notes)
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Suite 401, One University Avenue
Toronto, Ontario
M5J 2P1
(416) 861-0430
www.sra-corporation.com
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SRA announces Unit Offering
and Bridge Debt financing for its Mid-Tennessee Zinc Mining Complex
Toronto, Ontario. April 17, 2008 –
Strategic Resource Acquisition Corporation (“SRA” or the
“Company”) today announced that it has entered into an engagement
letter and filed a preliminary short-form prospectus for an offering of Units,
each comprised of one Common Share and one half of one Common Share Purchase
Warrant, to raise a minimum of $10 million. Each full warrant will be exercisable
into one common share for 18 months from date of closing. The offering will be co-led
by agents Blackmont Capital Inc. and Haywood Securities Inc.
Proceeds of the placement will be for the ramp
up of the Gordonsville Mine, rehabilitation of the Cumberland and Elmwood mines and for general
corporate purposes. The transaction is expected to close on or before May 8,
2008 and is subject to regulatory approval.
In addition, as part of its financing plans
to provide adequate working capital during production ramp-up, the Company has arranged
a short term secured bridge facility with Auramet Trading LLC for $11 million, with
a term of up to nine months and a coupon rate of 13%. The facility is expected
to close on or before April 23, 2008. It is the Company’s intention to
replace this interim bridge facility with a longer term equipment finance
package, which is expected to be in place in the next few weeks.
The raising of these funds enables the
Company to carry out its plans for the remaining 2008 development of the
Mid-Tennessee Mining Complex and provide a sufficient working capital base
during the ramp-up to full production.
About SRA
SRA Corporation is focused
on the development of the Mid-Tennessee zinc mining complex (MTM) in the State
of Tennessee.
The MTM is located approximately 50 miles east of Nashville with excellent infrastructure
including roads, water, power, major airport and access to a well-trained
workforce. MTM will produce one of the highest quality zinc concentrates in the
world and efforts are underway to establish recovery methods for the valuable
germanium and gallium contained in the concentrate. Once in full production, the Gordonsville Complex at MTM is
expected to be the largest zinc producer and domestic source
of germanium and gallium in the continental USA.
The Company also plans to
explore and develop additional properties and redeploy cash flow to pursue a
strategy of accretive acquisitions.
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information"
which may include, but is not limited to, statements with respect to the future
financial or operating performance of the Company and its projects, the future
price of zinc or other metal prices, the estimation of mineral resources and
realization of mineral resource estimates, the timing and amount of estimated
future production, costs of production, capital, operating and exploration
expenditures, costs and timing of the development of new deposits and future
exploration, requirements for additional capital, government regulation of
mining operations, environmental risks, reclamation expenses, title disputes or
claims, limitations of insurance coverage and the timing and possible outcome
of regulatory matters. These statements reflect management's current beliefs and are based on information
currently available. Forward-looking statements involve significant risks,
uncertainties and assumptions and other factors that may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
the forward-looking statements. A number of factors could cause actual results
to differ materially from the results discussed in the forward-looking
statements, including those listed in the ''Risk Factors'' section of the Company's
prospectus on file with Canadian provincial securities regulatory authorities.
For further
information, please email info@sra-corporation.com or contact:
Victor P. Wyprysky Ian M. MacNeily
President and Chief
Executive Officer Executive VP and Chief Financial Officer
Tel: (416) 861-0430 ext.
1833 Tel: (416) 861-0430 ext. 1422
Email: victor.wyprysky@sra-corporation.com Email: ian.macneily@sra-corporation.com
Donna Yoshimatsu
VP Investor Relations & Communications
Tel: (416) 861-0430 ext. 1003
Email:
donna.yoshimatsu@sra-corporation.com