From the Wires
Sage Closes Final Tranche of Private Placement
By: Marketwired .
Dec. 21, 2012 06:19 PM
TORONTO, ONTARIO -- (Marketwire) -- 12/21/12 -- Sage Gold Inc. (TSX VENTURE:SGX) (the "Company") announces the closing of the final tranche of a Cdn $ non-brokered private placement for gross proceeds of $312,049.90 through the sale of 3,032,664 Flow-Through Units (the "FT Units") at $0.075 per FT Unit and 1,410,000 Common Share Units ("the Common Share Units") at $0.06 per Common Share Unit.
Each Flow-Through Unit consists of one (1) flow through common share of the Company and one half (1/2) of one common share purchase warrant (the "Warrant"). Each full Warrant entitles its holder to purchase one common share at a price of $0.12 for a period of twenty four (24) months following the Closing Date.
Each Common Share Unit consists of one (1) common share of the Company and one half (1/2) of one common share purchase warrant (the "Warrant"). Each full Warrant entitles its holder to purchase one common share at a price of $0.10 for a period of twenty four (24) months following the Closing Date.
The Company will pay finder's fees of approximately $15,239.99 and issue 168,666 compensation options to the Common Share Unit and Flow-Through Unit participants.
All securities are subject to a four month hold period which expires on April 22, 2013. This private placement is subject to the final approval of the TSX Venture Exchange (the "Exchange"). The Company has received conditional approval of the private placement from the Exchange.
The proceeds of the private placement will be used to fund the Company's 60% share of the exploration and development expenses of the Clavos property in Timmins, Ontario and for general corporate purposes.
The Joint Venture between Sage (60%) and St Andrew Goldfields Ltd. (TSX:SAS) (40%) was announced in a Press Release dated August 13, 2012.
Sage recently announced an updated NI 43-101 resource for Clavos which includes indicated mineral resources of 1,258,400 tonnes at 4.81 g/t Au totaling 194,600
ounces of gold and Inferred mineral resources of 796,000 tonnes at 4.7 g/t Au representing 120,000 ounces. These resources are reported at a base case cut-off grade of 2.75 g/t Au and individual assays have been capped at 60 g/t.
The Company has secured the necessary permit and completed the change of ownership to re-open the Clavos Mine site in Timmins, Ontario for exploration, development and eventual production per the Press Release dated November 20, 2012.
Sage President and CEO Nigel Lees commented, "We are very pleased to have received the final permits to allow us to dewater the Clavos mine, continue advanced exploration and development and commence production of 700 tonnes per day. The closing of the first tranche of financing will allow us to continue to fund the pre-production expenses".
The Company also announces the grant of 2,805,000 stock options to Directors management, employees and consultants to purchase common shares of the Company exercisable at a price of $0.10 per share and expiring on December 21, 2017. These options and the terms and conditions of their exercise are governed by the Company's Stock Option Plan and are in accordance with policies within the TSX Venture Exchange.
Sage is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos Gold deposit in Timmins and the Lynx deposit and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.
This release was prepared by management of the Company who takes full responsibility for its contents.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward Looking Information" within the meaning of applicable Canadian securities legislation. Some forward looking statements and forward looking information contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. The Company disclaims any obligation to update forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOA World Latest Stories
Subscribe to the World's Most Powerful Newsletters
Subscribe to Our Rss Feeds & Get Your SYS-CON News Live!
SYS-CON Featured Whitepapers
Most Read This Week