Mr. Mark McLeary of Silver Sun reports
SILVER SUN PROVIDES CORPORATE UPDATE ON ZACATECAS PROPERTIES AND PROCEEDS FROM EXERCISE OF WARRANTS
Silver Sun Resource Corp.'s board has determined to proceed with the production of the stockpiles within the Zacatecas concessions located in the Zacatecas district in north-central Mexico. Further, the company has access to additional mineralized stockpiles in the immediate area of which the company has previously trenched, sampled and surveyed. The company's Zacatecas project is jointly owned with Impact Silver Corp., with the company holding a 73-per-cent interest in the project. A copy of the company's NI 43-101 technical report on the Zacatecas properties dated Aug. 21, 2008, is available on SEDAR.
Further to the company's Stockwatch news release of Oct. 4, 2010, and as disclosed in the company's management discussion and analysis for three months ended Oct. 31, 2010, the company has received the mining and reclamation permits required from the Mexican government in order to put the property into production. The company's ability to commence production is subject to a number of conditions including reaching agreements with mill owners to process material from the company's stockpiles. There is no assurance that the company will commence production on the Zacatecas properties or that such production will produce economically feasible results.
The company is currently negotiating with local mill owners regarding the opportunity to produce through their mills. There is no assurance that the company will reach an agreement on commercially acceptable terms with the local mill owners as planned or at all.
Exercise of warrants
As a corporate update, the company is pleased to announce that it has received gross proceeds of $1,220,738.40 from the exercise of 12,207,384 warrants at a price of 10 cents per warrant into common stock of the company from prior private placements. The company intends to use its cash on hand to continue with its exploration/exploitation activities on its Mexican projects.
We seek Safe Harbor.
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