Silver Spruce Provides Update on Recent Developments
BRIDGEWATER, NOVA SCOTIA, Nov 15, 2012 (Menafn - MARKETWIRE via COMTEX) --Silver Spruce Resources Inc. (frankfurt:S6Q)comments on recent record trading levels, the company's current shareprice in light of the proposed private placement and its strategygoing forward.
Record Trading Levels - In the period immediately following itsOctober 22, 2012 news release announcing that the company would raiseup to 1M through a private placement, Silver Spruce's shares havetraded at record volumes and fallen to 0.02 from a range of 0.035to 0.05 prior to the release. The majority of the approximately 18million shares traded after October 22, 2012 traded anonymously, withevery indication that they were related to one main seller. Duringthis period, there were no fundamental changes in the company'sprojects or financial condition.
"The silver lining in the exit of one insider with a large shareposition is that that many buyers stepped in and purchased shares ata greatly reduced price, indicating their belief in the longer-termprospects and value of the company. I thank them for showingconfidence in our company, as well as our many other shareholders forstaying the course and taking a long-term view in tough times," saysPeter Dimmell, President and CEO of Silver Spruce Resources Inc.
Status of Current Prospects - As indicated in recent news releases,exploration on the company's Big Easy gold /silver prospect on theisland of Newfoundland is progressing well. Phase II drilling resultshave been reported and a 3D structural compilation of all drillresults is underway. Preliminary airborne survey data has beenreceived and the final data is expected soon - this will beintegrated with the drilling and regional exploration to betterdefine target areas for future exploration.
"Our team is systematically evaluating a promising epithermal-stylegold/ silver prospect along a regional belt that is receivingsignificant exploration attention. Once we receive all data andcomplete compilation work, we will release that information alongwith details of our 2013 exploration and deep drilling program forthe Big Easy prospect," says Dimmell.
The company also remains bullish on the medium to long-term outlookfor uranium. Silver Spruce can hold the majority of its uraniumclaims in the Central Mineral Belt and elsewhere in Labrador for anumber of years without requiring more exploration, until uraniumprices rebound and conditions for raising exploration capital foruranium exploration are more favourable.
Status of the Private Placement - On October 22, 2012, Silver Spruceissued a news release indicating the Company would be proceeding witha private placement of units, consisting of shares at five cents and,depending on flow-through or non-flow through options, a half or fullwarrant. The Company believes that its shares are undervalued and istherefore not planning to change the conditions of the privateplacement at this time. "We believe it is prudent to see how ourstock price recovers from the exit of the insider with thesignificant share position. While we will need to raise capital tofund our 2013 program at Big Easy, a private placement is not theonly option we are pursuing," says Dimmell.
About Silver Spruce Resources Inc.
Silver Spruce is a diversified junior exploration company with aportfolio of gold/silver (Big Easy), uranium (Snegamook, A7 (FishhawkLake), Double Mer, Mount Benedict, CMBJV) and rare earth (Pope'sHill, Pope's Hill JV (with Great Western Minerals Group), MRT, RWM,Straits) projects in Newfoundland and Labrador. With interests inmore than 4,000 claims totalling more than 1,000 square kilometres inLabrador, Silver Spruce is one of the largest landholders in one ofthe world's premier emerging uranium and rare earth districts. Foradditional information, please visit the Company's website -www.silverspruceresources.com.
This news release contains forward-looking statements that involverisk, uncertainties and other factors that could cause actual resultsto differ materially from those expressed or implied by suchforward-looking statements. Such forward-looking statements reflectSilver Spruce's views with respect to future events (including thecompletion of the Offering and the intended use of proceeds) andthere can be no assurances that such statements will prove to beaccurate. There may be factors (such as, ability to obtain regulatoryapprovals or results of current exploration) that cause actions,events or results not to be as anticipated or intended. Anyforward-looking statement speaks only as of the date on which it ismade and, except as may be required by applicable securities laws,Silver Spruce disclaims any intent or obligation to update anyforward-looking statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.The company seeks Safe Harbour.
Silver Spruce Resources Inc.
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SOURCE: Silver Spruce Resources Inc.
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