SST Release:
Silverstone Resources Corp. ("Silverstone")(TSX VENTURE:SST) is pleased to announce it has entered into an agreement for a private placement with a syndicate of underwriters led by Scotia Capital Inc. and including PI Financial Corp. pursuant to which the underwriters have agreed to purchase 17,250,000 common shares of Silverstone at a price of $2.90 per share for aggregate gross proceeds of approximately $50.0 million. Capstone Mining Corp. has indicated that it will purchase 3,577,670 common shares of Silverstone in the offering. The underwriters also have been granted an option to purchase an additional 3,450,000 common shares of Silverstone at the issue price for additional gross proceeds to the company of $10,005,000. The offering is being completed on a private placement basis subject to certain conditions including, but not limited to, the execution of a definitive underwriting agreement and the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The offering is expected to close on or about November 27, 2007.
Net proceeds from the offering will be used to repay debt and for general corporate purposes including potential acquisitions of silver production.
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 absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer or sale of securities in the United States.
