Solid advances funds to Bearing Golds project in Columbia
Solid Resources Ltd. announces that it has advanced a loan in the principal amount of $75,000 to Bearing Gold Resources Corp. As security for the Loan, Bearing Gold has issued: (a) a non-convertible promissory note with a term of one year and with an interest rate of 10% per annum; and (b) a general security agreement charging all of Bearing Gold’s present and after acquired personal property.
The Loan is a “related party transaction” as certain directors, officers and insiders of Solid are also shareholders of Bearing Gold. The TSX Venture Exchange has, pursuant to correspondence dated September 26, 2008, accepted for filing the Loan agreements between the two companies.
The principal amount of the Loan will be used to fund start up operations at the El Cerro Mine represented by two concessions in the Frontino area of Columbia. Bearing Gold has an option to acquire a 90% interest in such concessions.
On July 22, 2008 Solid announced that it had entered into a non-binding letter of intent with Bearing Gold relating to the proposed combination of the companies’ respective businesses (the “Transaction”). The special committee of Independent Directors consisting of Gary Kissack, Derek Frost and Leonard Trump approved the Loan and continue to investigate and negotiate the proposed transaction with Bearing Gold.
