TORONTO, Oct. 17, 2007 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce that it has closed a private placement consisting of 1,000,000 units (the "Units") in the Company at a price of US$1.00 per Unit for gross proceeds of US$1,000,000. Each Unit is comprised of one restricted common share and two one-half of one common share purchase warrants. One whole warrant will entitle Unit holders to purchase one additional common share (the "Warrant Shares") of the Company at exercise prices of US$2.00 and US$5.00 per Warrant Shares at any time within two years from the date of closing.
"This US$1 million financing was priced at a premium to the current market price of our stock which we believe is a reflection of our ongoing drill program results in Mexico and our continued progress in China," commented Mr. Marc Hazout, President and Chief Executive Officer of Silver Dragon Resources Inc. "The Company plans to use proceeds from the financing to continue development of the Cerro las Minitas silver mine in Durango, Mexico; to continue the exploration and National Instrument 43-101 compliant conversion program presently under way at the nine Erbahuo silver properties in China; and for general corporate purposes."
Silver Dragon Resources Inc. is a mining and metal company focused on the exploration, acquisition, development and operation of silver mines in proven silver districts globally. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets, have highly-leveraged, out-of-the-money silver deposits, and/or are producing properties with significant untapped exploration potential. It is management's objective to grow Silver Dragon into a significant silver producer by developing the Cerro las Minitas and the Erbahuo projects in Mexico and China. For more information, please visit the Company's website at: www.silverdragonresources.com (now available in Chinese).
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to the timing and outcome of our feasibility studies, exploration and development, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
The securities have not and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or the securities laws of any state, and may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.