Southern USA sells $295,000 of discounted convertibles for $236,000

Company sells zero-coupon two-year secured convertibles in placement

By Devika Patel

Knoxville, Tenn., Jan. 9 - Southern USA Resources Inc. settled a private placement of $295,000 secured convertible promissory notes on Dec. 21 and Jan. 7, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal raised $236,000 with an original issue discount of 20%.

The $100,000 of 0% notes issued in December are due 2014 and will initially convert to common shares at $0.20 per share. The conversion price is a 90.48% discount to the Dec. 20 closing share price of $2.10.

The $195,000 of 0% notes issued in January are due 2015, and will initially convert to common shares at $0.15 per share. The conversion price is a 93.8% discount to the Jan. 4 closing share price of $2.42.

The West Atlantic City, N.J., company plans to search for mineral deposits or reserves.

Issuer:	Southern USA Resources Inc.
Issue:	Secured convertible promissory notes
Amount:	$295,000
Maturity:	Dec. 21, 2014 (for $100,000), Jan. 7, 2015 (for $195,000)
Price:	20% discount ($236,000)
Coupon:	0%
Conversion price:	$0.20 (for $100,000), $0.15 (for $195,000)
Warrants:	No
Settlement date:	Dec. 21 (for $100,000), Jan. 7 (for $195,000)
Stock symbol:	OTCBB: SUSA
Stock price:	$2.10 at close Dec. 20, $2.42 at close Jan. 4
Market capitalization:	$72.06 million

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