VANCOUVER, BC, Dec. 2, 2021 /CNW/ - Southern Empire
Resources Corp. ("Southern Empire") (TSXV: SMP) (OTC Markets:
SMPEF) (Frankfurt: 5RE) is pleased
to announce it has closed its previously announced non-brokered
private placement financing by issuing 10,000,000 units of Southern
Empire (each a "Unit") at a price of $0.10 per Unit for gross proceeds of $1,000,000 (the "Offering").
Each Unit consists of one common share of Southern Empire (a
"Common Share") and one Common Share purchase warrant (each, a
"Warrant"), with each Warrant entitling the holder to purchase one
additional Common Share for a period of three years from the date
of issue at an exercise price of $0.15 per Common Share.
Certain directors and insiders of Southern Empire acquired
2,146,000 Units pursuant to the Offering (the "Insider
Participation"). Dale Wallster, CEO
of Southern Empire stated: "We are very pleased that all insiders,
directors and officers of Southern Empire participated in this
raise, which will allow us to drill the Pedro epithermal gold
targets and advance exploration of our Oro Cruz Project without
having to generate cash through the sale of our marketable
securities portfolio."
The Insider Participation is a "related party transaction" as
defined in the Canadian Securities Administrators' Multilateral
Instrument 61-101 - Protection of Minority Security Holders in
Special Transactions ("MI 61-101") and is exempt from the
formal valuation and minority shareholder approval
requirements of MI 61-101.
All securities issued pursuant to the Offering are subject to
restrictions on resale until March 30,
2022.
The proceeds of the Offering will be used for exploration
programs on Southern Empire's mineral properties, and for general
working capital purposes.
Subsequent to the Offering, Southern Empire will have 60,906,800
Common Shares issued and outstanding.
The securities being offered have not, nor will they be
registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold within the United States or to, or for the account or
benefit of, U.S. persons in the absence of U.S. registration or an
applicable exemption from the U.S. registration requirements. This
release does not constitute an offer for sale of securities in
the United States.
Qualified Person
The scientific and technical information contained in this news
release has been prepared, reviewed and approved by David Tupper, P.Geo. (British Columbia), Southern Empire's VP
Exploration and a Qualified Person ("QP") within the context
of the Canadian Securities Administrators' National Instrument
43-101; Standards of Disclosure for Mineral Projects (NI
43-101).
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and
development of metals and minerals deposits in North America.
In northeastern Durango State, México, Southern Empire has an
option to acquire a 100-per-cent beneficial interest in the
1,750-hectare Pedro Gold Project where 2014 drilling by a
subsidiary of Newmont Mining Corporation encountered epithermal
gold mineralization within basal conglomerates of the Ahuichila
Formation. At Pedro, permits are established for up to 25 drill
holes with nine drill holes currently planned; please see Southern
Empire's news release of July 27,
2021.
In the Cargo Muchacho mountains of Imperial County, California, Southern Empire
owns 100 per cent of the historical gold-producing American Girl
mine property and holds options to acquire a 100-per-cent interest
in the adjacent 2,160-hectare (5,338-acre) Oro Cruz property
located approximately 22.5 kilometres (14 miles) southeast of the
operating Mesquite gold mine of Equinox Gold Corp.
At Oro Cruz, extensive historical drilling and large-scale
open-pit and underground mining of the American Girl, Padre y
Madre, Queen and Cross oxide gold deposits by the American Girl
Mining Joint Venture (AGMJV; ultimately owned 53 per cent by MK
Gold Company and 47 per cent by Hecla Mining Company) occurred
between 1987 and 1996. During that time, gold was recovered by
either heap leaching of lower-grade, or milling of higher-grade
ores until AGMJV operations ceased in late 1996 because of
declining gold prices leaving the Oro Cruz property with many gold
exploration targets in addition to the historical inferred resource
estimate, reported In 2011 by Lincoln Mining Corp., totalling
341,800 ounces gold based on 4,386,000 tonnes averaging 2.2 grams
gold per tonne at a cut-off grade of 0.68 g/t Au (4,835,000 tons at
0.07 ounce gold per ton; Please refer to the Cautionary Notice
Regarding the Oro Cruz Property Historical Resource Estimate
below).
On behalf of the Board of Directors of Southern Empire
Resources Corp.,
Dale
Wallster, CEO and Director
Cautionary Notice on Forward-Looking Information
Information provided in this news release may contain
forward-looking information or forward-looking statements that are
based on assumptions as of the date of this news release. Such
information or statements reflect management's current estimates,
beliefs, intentions and expectations and are not guarantees of
future performance. Southern Empire cautions that all
forward-looking statements are inherently uncertain and that actual
performance may be affected by a number of material factors, many
of which are beyond its respective control. Such factors include,
among other things: risks and uncertainties relating to Southern
Empire limited operating history, the need to comply with
environmental and governmental regulations, results of exploration
programs on its projects and those risks and uncertainties
identified in its annual and interim financial statements and
management discussion and analysis. Accordingly, actual and future
events, conditions and results may differ materially from the
estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required
under applicable securities legislation, Southern Empire undertakes
no obligation to publicly update or revise forward-looking
information
Cautionary Notice Regarding Historical Resource
Estimate
The historical resource estimate outlined above is disclosed in
a technical report dated April 29,
2011, prepared for Lincoln Mining Corp. by Tetra Tech, Inc.
and filed on Canadian Securities Administrators' System for
Electronic Document Analysis and Retrieval (SEDAR). It is termed an
inferred mineral resource, which is a category set out in NI
43-101. It was based on historical reverse circulation and core
drill hole sample, underground channel sample, and blasthole sample
assay results and calculated using ordinary kriging to estimate
gold grades in 10-foot-by-10-foot-by-five-foot blocks. Accordingly,
Southern Empire considers this historical estimate reliable as well
as relevant as it represents key targets for future exploration
work. However, a QP has not done sufficient work to verify or
classify the historical estimate as a current mineral resource and
Southern Empire is not treating this historical estimate as current
mineral resources.
Work Programs During the COVID-19 Pandemic
Timing of Southern Empire's exploration programs will be
contingent on governmental regulations regarding the COVID-19
pandemic and the availability of exploration-related personnel,
drill contractors, equipment, lodging, et cetera. Southern Empire
will adhere to COVID-19 directives regarding safe working practices
putting worker, community and national safety first and will
proceed with exploration and development work programs only if
potential COVID-19 risks can be effectively managed.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the Exchange) accepts responsibility for the adequacy
or accuracy of this release.
SOURCE Southern Empire Resources Corp.