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Gold/Mining/Energy : Sierra Nevada Gold - SDD.vse -- Ignore unavailable to you. Want to Upgrade?

To: rdww who wrote (33)	9/16/1998 10:08:00 AM
From: rdww	Respond to of 65

Debt restructuring; financing completed; Promontorio exploration progress Sierra Nevada Gold Ltd SDD Shares issued 17,086,456 Sep 15 close $0.06 Tue 15 Sept 98 News Release September 15, 1998 - Sierra Nevada Gold Ltd. has reached agreements with creditors to settle indebtedness of $284,319.25 by the issuance of 1,895,462 shares at a price of $0.15 per share, subject to regulatory approval. The debt consists of an accrued property payment of $53,767.50 (Promontorio property); consulting paid to two firms in the amount of $6,138.20; and $224,368 for services provided (accounting, administration and management) by two officers of the Company over a two-year period. Further agreement has been reached to convert $167,818 in current accounts payable, to long-term promissory notes. This money was lent to the Company through a series of payments over the course of the past 18 months. The money owed to two directors will be in the form of one-year promissory notes with interest payable monthly. These two arrangements will reduce the Company's current accounts payable to $63,273 (owed for legal, audit and current credit card balances). Management believes the restructuring of the Company's current debt will assist in efforts to obtain financing. The Company would like to also announce that it has completed the Private Placement announced in a News Release dated June 8, 1998. Under the terms of the private placement, 500,000 units were sold at a price of $0.15 per unit. Proceeds from the sale were $75,000.00. The funds raised will be applied towards sampling and metallurgical testing on the Company's Promontorio Property and general corporate expenses. The Company has completed bulk sampling from underground workings on its Promontorio property, located in Chihuahua, Mexico. These samples will be used in metallurgical testing. The Promontorio is the copper/gold/silver property which the Company has been developing over the past two years. The current outlined resource, calculated by an independent engineering firm, contains an indicated/inferred 93,534,000 lbs copper, 2,287,000 oz silver and 95,400 oz gold. Copper grades are extremely high, some core recovering values +30% copper. The resource outlined to date is contained in a 150 m x 150 m area which has only been drilled to a depth of 150 metres. The deposit is open at depth and several other interesting drilling targets remain on the property. The Company is currently involved in discussions to (1) expand the current land position and/or (2) joint venture the Promontorio property. Drilling on the Company's La Republica silver property, Chihuahua, Mexico encountered serious difficulties due to overburden and a highly fractured hanging wall. One hole was completed intersecting the vein at 308 feet. At that depth, the vein had been mined. After considering the difficult and costly drilling conditions and ongoing property payments, the Company has determined its funds would be better spent concentrating on the Promontorio Property which is in an advanced-stage of development. For these reasons, notice has been given to the owner of La Republica that we intend to terminate our purchase agreement. Sierra Nevada Gold's shares trade on the Vancouver Stock Exchange, under Symbol "SDD". Persons wishing to be placed on the Company's Supplemental mailing list for future news releases may contact the Company at (530) 273-2170. On Behalf of the Board of Directors Bonnie J. Lee, President The Vancouver Stock Exchange neither approves nor disapproves of the content of this News Release which was prepared solely at the discretion of Management. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com