Sunergy Closes $687,750 in Combined Equity and Debt Financing to Provide Funds for Mining Operations in Sierra Leone and Ghana, West Africa: Warrants Offer Additional $2,637,796++
Press Release Source: Sunergy Inc. On Wednesday May 11, 2011, 7:14 am EDT
SCOTTSDALE, AZ--(Marketwire - 05/11/2011) - Sunergy, Inc (the
- News) is pleased to announce that Since January 1, 2011 the Company has received proceeds of $687,750 from financing activities through a combination of private placement equity and short term debt.
Equity raised is $477,750 through issuance of 136,500,000 restricted common shares priced at $0.0035 and 36,500,000 share purchase warrants priced at $0.006 and 100,000,000 warrants priced at $0.007 all for 1 year. The $0.007 warrants have incentive warrants attached that allow for full additional warrant coverage provided the initial warrants are exercised on or before the 7th month. If exercised in the 8th month, 80% warrant coverage; if exercised in the 9th month, 70% warrant coverage; if exercised in the 10th month, 60% warrant coverage; if exercised in the 11th month, 50% warrant coverage; if exercised in the 12th month, 40% warrant coverage. All incentive warrants will be for a period of 1 year and be exercisable at a 30% discount to market at the time of exercise based on the average of closing bids for the five trading days prior to warrant exercise.
Debt issued as follows: Dredge Financing raised $120,000 and additional short term loan financing raised $90,000 for a total of $210,000. The dredge financing required 12,000,000 restricted shares to be issued with 12,000,000 warrants priced at $0.005 for 1 year. The $90,000 short term loans required 1,800,000 restricted shares to be issued with 1,800,000 warrants priced at $0.0075 for 1 year. Debt is all repayable within the next 90-180 days. The Company has no other debt.
P.K. Medhi, Chairman said: "I am pleased that our Company is now in a position to advance our dredge operations in Sierra Leone for gold and rare earths on our 140.1 sq. km. Pampana River concession. The majority of our funds will be allocated towards immediate cash flow and growing our operating portfolio in Sierra Leone. Adequate funds will be allocated to our Ghana projects to sustain 2011 planned operations and prepare for operations growth next year. Our focus on cash flow will provide rapid and stable growth to our Company."
Total Warrants outstanding are as follows:
100,000,000 warrants exercisable at $0.0025 for $250,000 if exercised
100,000,000 warrants exercisable at $0.005 for $500,000 if exercised (all from Allied acquisition expire October 18, 2011)
50,384,260 warrants exercisable at $0.005 per share for a period of 12 months for $251,920. If exercised (expire January 17, 2012)
128,675,200 warrants exercisable at $0.005 per share for a period of 12 months for $643,376 if exercised (expire January 17, 2012)
36,500,000 warrants at $0.006 for a period of 12 months for $219,000 if exercised (expire March and April 2010)
100,000,000 warrants at $0.007 for a period of 12 months for $700,000 if exercised (expire March 2012)
12,000,000 warrants exercisable at $0.005 for a period of 12 months for $60,000 if exercised (expire January 2012)
1,800,000 warrants exercisable for a period of 12 months for $13,500 if exercised (expire April 2012)
Should the above 516,939,460 warrants be exercised, an additional $2,637,796 will be raised.
Incentive warrants if issued could bring an additional $1-$3million based on a 30% discount to the market price out 7 to 12 months from now. The amount of incentive warrants decrease from 100% in month 7 to 40% in month 12.
The above financing information will be discussed more fully in an 8-K to be filed shortly. Further information on operations and financial report filings will be forthcoming.
Please visit the Sunergy website www.sunergygold.com and review further information such as Company Reports under Projects, Previous Press Releases and SEC filing information under Investor Info. Follow Sunergy on Facebook at http://www.facebook.com/pages/Scottsdale-AZ/Sunergy-Inc/219104844770131 and Twitter http://twitter.com/#!/SunergySNEY or for direct access icons are on our home page on our website.
About Sunergy: The Company is an aggressive junior mining exploration and development Company that is production oriented at the earliest possible profitable opportunity. We control 100% of the 150 SQ. Km. Nyinahin mining concession with a full prospecting license in Ghana, West Africa and the 140.1 sq. km. Pampana River Rare Earth, Gold and Diamond concession in Sierra Leone, West Africa. We are focused on near term production of these properties this season. We are production and acquisition oriented and are considering several additional projects suitable for near term production in West Africa.
Notice Regarding Forward-Looking Statements
This current report contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, any mineralization, development or exploration of the Nyinahin and Pampana Mining Concessions.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.