Sarissa Resources Announces the Spin-Out of its Interests in its Shining Tree Mineral Claims
|Posted on Mar 31 2011|
|News >> Press Releases|
Oakville, ON, March 29, 2011 – Sarissa Resources, Inc. (“Sarissa” or “the Company”) (OTC Pinksheets: SRSR) is pleased to announce that it proposes a spin-out transaction for the Company's Shining Tree gold property (the "Shining Tree Property") in Northern Ontario to a new company, Shining Tree Resources Corp. ("Shining Tree"). Sarissa expects that it will accomplish this spin-out by declaring a dividend-in-kind of all the shares of Shining Tree to the shareholders of Sarissa. The spin-out is being implemented as a first step in the Company’s continued efforts to enhance shareholder value, which Sarissa is confident can be best accomplished by creating a separate Ontario focused exploration company. Management of Sarissa hopes that Shining Tree would become a Canadian reporting issuer at the time of, or as soon as possible following, the spin-out.
The Shining Tree Property consists of 7 contiguous claim groups, approximately 1200 acres, in the Shining Tree gold area of Northern Ontario. In connection with the spin-out a NI 43-101 independent report is currently being prepared on the Shining Tree Property. The Shining Tree Property lies within the southwest part of the Abitibi greenstone belt. The Abitibi greenstone belt is prospective for a number of mineral deposit types, including mesothermal lode gold deposits, volcanogenic massive base metal sulphide deposits and layered magmatic sulphide (Ni) deposits.
The Shining Tree area has been considered an under-explored area within a highly prospective region, due primarily to a land caution covering the area from 1973 until 1996. Previous exploration and diamond drilling on the property by Sarissa had returned positive results, as previously released, and Shining Tree Resources Corp. will further test these and other targets.
Pursuant to the spin-out transaction, Sarissa shareholders on the record date for the spin-out will be entitled to receive one share in Shining Tree Resources Corp. for each thirty-five shares of Sarissa held by them. The spin-out is subject to, among other things, Board approval of the final structure and terms of the spin-out, and regulatory approvals, as required.
Further particulars, including the record date for the spin-out, will be announced in due course and a complete description of the spin-out will be provided in future announcements setting forth greater details regarding the spin-out, Shining Tree’s establishment as a Canadian reporting issuer and any plans for listing of Shining Tree on a stock exchange.
Warren Hawkins, P.Eng., a “qualified person” within the meaning of NI 43-101, 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 members of its management as well as 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. The Company does not undertake 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 with base metal, precious metal, uranium, niobium and rare-earth prospects in Northern Ontario, Canada. The Company is specifically focused on the development of its Nemegosenda niobium project.
FOR FURTHER INFORMATION contact:
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