VANCOUVER, Oct. 21, 2020 /CNW/ - Southern Empire Resources
Corp. (Southern Empire) (TSXV: SMP) (Frankfurt: 5RE) announces that MAS Gold Corp.
(MAS Gold) (TSXV: MAS ) has informed Southern Empire that the
special resolution to approve the plan of arrangement between MAS
Gold and Southern Empire was not approved by the shareholders of
MAS Gold at the special meeting of MAS Gold held on October 20, 2020 (the "Meeting"). A total
of 65.67% of the MAS Gold shareholders present at the meeting (in
person or by proxy), voted in favour of the special resolution,
however, a vote of 66.66 % was required. Given the
shareholders of MAS Gold did not approve the plan of arrangement,
Southern Empire will not be proceeding with its proposed
acquisition of all of the issued and outstanding shares of MAS
Gold.
Dale Wallster, CEO of Southern
Empire stated: "We are very disappointed given that we came within
1 percent of achieving our objective. 78.77% of the issued MAS Gold
share capital was voted at the Meeting and the majority of those
MAS Gold shareholders that voted were in favour of Southern
Empire's proposed acquisition transaction, but the minority ruled
the day. We would like to especially thank the many MAS Gold
shareholders who supported our efforts and believed in our vision."
Continuing, he said: "Southern Empire currently has working capital
of about $7 ½ million. We will use
our strong balance sheet to focus on lower-risk, higher-grade gold
assets, such as our Oro Cruz Gold Project."
Southern Empire also announces that Bryan Slusarchuk has resigned as a
director. Southern Empire wishes to thank Bryan for all of
his considerable efforts in Southern Empire's development to date
and his service as a member of the Board of Directors.
Work programs during the COVID-19 pandemic
Southern Empire is well-financed to fund further exploration and
development programs, having recently completed two oversubscribed,
non-brokered private placement financings (see Southern Empire's
news releases dated March 18 and
June 12, 2020 for details).
Timing of Southern Empire's exploration programs will be
contingent on governmental regulations regarding the COVID-19
pandemic and also the availability of exploration-related
personnel, drill contractors, equipment, lodging, et cetera.
Southern Empire will adhere to COVID-19 directives regarding safe
working practices putting worker, community and national safety
first and will proceed with exploration and development work
programs only if potential COVID-19 risks can be effectively
managed.
Qualified Person
The scientific and technical information contained in this news
release has been prepared, reviewed, verified and approved by
David Tupper, P.Geo. (British Columbia), Southern Empire's VP
Exploration and a Qualified Person (QP) within the context of
Canadian Securities Administrators' National Instrument 43-101;
Standards of Disclosure for Mineral Projects.
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and
development of gold deposits in North
America.
In the Cargo Muchacho mountains of Imperial County, California, Southern Empire
owns 100% of the historical gold producing American Girl Mine
property and also holds options to acquire a 100% interest in the
adjacent 2,160 hectare (5,338 acre) Oro Cruz Property located
approximately 22.5 kilometres (km; 14 miles) southeast of the
operating Mesquite gold mine of Equinox Gold Corp.
With a history that includes extensive drilling and large-scale
open pit and underground mining by the American Girl Mining Joint
Venture (53 per cent owned by MK Gold Company, then a subsidiary of
Morrison Knudsen Corporation, and 47 per cent owned by Hecla Mining
Company), which was suspended during the gold market downturn in
1996, the Oro Cruz Gold Project hosts many exploration targets in
addition to a high-grade oxide gold zone that, based on the
historical mine operation records, is amenable to conventional heap
leach extractive methods.
On behalf of the Board of Directors of Southern Empire
Resources Corp.,
Dale
Wallster, CEO and Director
For further information on Southern Empire please visit
both www.smp.gold and SEDAR.
Cautionary Notice on Forward-Looking
Information
Information provided in this news release may contain
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions and expectations. They are
not guarantees of future performance. Southern Empire cautions that
all forward-looking statements are inherently uncertain and that
actual performance may be affected by a number of material factors,
many of which are beyond its respective control. Such factors
include, among other things: risks and uncertainties relating to
Southern Empire limited operating history, the need to comply with
environmental and governmental regulations, results of exploration
programs on its projects and those risks and uncertainties
identified in its annual and interim financial statements and
management discussion and analysis. Accordingly, actual and
future events, conditions and results may differ materially from
the estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required
under applicable securities legislation, Southern Empire undertakes
no obligation to publicly update or revise forward-looking
information.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Southern Empire Resources Corp.
