Sage Closes Final Tranche of Private Placement
TORONTO, ONTARIO -- (Marketwire) -- 10/26/10 -- Sage Gold Inc. (TSX VENTURE: SGX) (the 'Company') announces the closing of the last tranche of a non- brokered private placement of 4,416,666 units at Cdn $0.18 per unit, each unit consisting of one (1) common share plus one-half (1/2) common share purchase warrant for gross proceeds of Cdn $795,000.
Each whole common share purchase warrant shall entitle the holder to purchase one share at the exercise price of $0.28 for a term of two (2) years from the closing date of the offering. If the Company's shares trade at or above $0.40 per share for 21 consecutive trading days the Company may, at any time after the expiry of the statutory hold period, accelerate the expiration of the Warrants upon not less than 30 days written notice by the Company, and thereafter repurchase any unexercised Warrants at $0.001 per underlying common share.
The Company may pay finder fees of up to 8% cash plus options to purchase units which are equal to 8% of the number of units sold by the finders. The warrants shall expire 24 months after the closing of the offering.
This closing completes the non flow-through private placement totalling $1,520,000 representing 8,444,444 units at $0.18 per unit.
All securities issued in connection with this financing will be subject to a four-month hold period from the closing date.
The net proceeds of the offering will be used for the exploration and development of the Clavos mine near Timmins, Ontario and the exploration of the Company's properties in the Beardmore - Geraldton area of NW Ontario and for other general corporate purposes.
Although the TSX Venture Exchange has conditionally approved this private placement, all closings of this private placement are subject to final acceptance from the Exchange.
OPTIONS ISSUE
Sage will also issue 1.9 million options exercisable at $0.25 to directors, consultants and employees of the Company subject to TSX.V and Board of Directors approval.
SAGE is a mineral exploration and development company which has primary interests in exploration and development properties in Ontario. Its main properties are the Clavos Gold mine in Timmins and its 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.
Contacts:
Sage Gold Inc.
Nigel Lees
President and C.E.O.
416-204-3170
416-260-2243 (FAX)
Sage Gold Inc.
Mike O'Brien
Manager/Investor Relations
416-204-3170
416-260-2243 (FAX)