Jan 29 2011
Sierra Resource Group, Inc. has learned that certain rumors are circulating about its relationship with a Bolivian mining concern.
In order to dispel these rumors, the Company confirmed that it signed a letter of intent with Kony Minera S.A. on December 15, 2010. The letter set forth the general terms of a potential joint venture regarding an alluvial gold placer mining project near Santa Cruz, Bolivia.
There can be no assurance that a definitive joint venture agreement will be signed. The Company is currently awaiting bids from a Bolivian based geologist and expects to start the evaluation process when it receives funding for the testing. The Company has 360 days from the date of the letter of intent to complete the evaluation process. If a definitive joint venture agreement is signed, the Company would be responsible for all capital expenditure to put the mine into production.
"It is not Sierra Resource Group's policy to comment on market rumors about company matters," said Patrick Champney, CEO of the Company. "However, these rumors have been so persistent that we wanted to set the record straight. The Company will always release information concerning acquisitions and other material events in a timely manner, when it enters into definitive agreements."
Mr. Champney continued: "We advise investors to rely only upon publicly available information concerning definitive material events as disclosed in our filings made with the United States Securities and Exchange Commission or in official press releases issued by the Company, in order to assess the value of an investment in the Company. Investors should always perform their own analysis and also consult their financial advisors prior to making any investment decision."
Source: Sierra Resource Group, Inc.