Skyline Announces Increase of Private Placement and Closing of First Tranche
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/11/11 -- Skyline Gold Corporation (TSX VENTURE: SK) ('Skyline' or the 'Company') announced a non-brokered financing of $4 million on June 13, 2011, offering a selection of units comprised of:
-- One flow-through common share at a price of $0.28 per unit with a half
flow-through warrant exercisable for two years at a price of $0.40 per
whole common share, or
-- One non-flow-through common share at a price of $0.24 per unit with a
half non-flow-through warrant exercisable for two years at a price of
$0.35 per whole common share.
At the announcement date, the Company estimated that its spring and summer exploration work would require initial funding of approximately $4 million. The digital compilation of the historic data and early results from the current exploration program are progressing well and have disclosed additional lower elevation targets which could allow for an extended field season to complete additional follow-up work.
The re-establishment and expansion of the exploration camp and the initial exploration work has progressed better than expected. The exploration focus remains on delivering drill-ready targets that will test for high-grade gold structures.
The Company is pleased to announce that there has been strong demand for this financing and that, coupled with the potential for more field work this year, has caused the Company to increase the current offering by $2 million to a maximum of $6 million. The Company expects to close the second tranche on July 14, 2011.
The first tranche of the Company's non-brokered private placement was closed on July 8, 2011 with a total of 10,751,000 units for net proceeds of $2,908,680. The total includes both flow-through and non-flow-through units that are allocated as follows:
-- 8,211,000 flow-through units priced at $0.28 per unit, and
-- 2,540,000 non-flow-through units priced at $0.24 per unit.
All units have a hold period that expires four months from the date of issue.
Skyline Gold Corporation is a Canadian company engaged in the exploration of precious and base metals in mining friendly British Columbia. The Company is committed to building an experienced technical team with seasoned management equipped to understand the geological controls on mineralization known to exist in the Golden Triangle of British Columbia. The Skyline land package has consolidated some of the most prospective ground Canada has to offer, hosting both high-grade structural systems and lower grade large tonnage porphyries. Further details on Skyline Gold Corporation and its high quality precious and base metal exploration targets can be found at www.skylinegold.com.
Cautionary Statements
Statements in this release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual events to differ materially from those projected. There are no assurances the Company can fulfill such forward-looking statements and the Company undertakes no obligation to update statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control.
NR - SK-11-10
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:
Skyline Gold Corporation
Bob Matthews
Chairman of the Board
604-681-3989
604-681-3557 (FAX)
www.skylinegold.com