Spanish Mountain Gold Ltd.
TSX VENTURE : SPA

Spanish Mountain Gold Ltd.

February 10, 2010 08:00 ET

Spanish Mountain Announces Private Placement and New Director

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 10, 2010) - Spanish Mountain Gold Ltd. ("Spanish Mountain" or the "Company") (TSX VENTURE:SPA) is pleased to announce that it is undertaking a private placement of up to 15,152,000 common share units (the "Units") at a price of $0.33 per Unit for gross proceeds of up to approximately $5,000,000 and the appointment of Mr. Dale Corman to its Board of Directors.

Private Placement

Each Unit offered in the private placement will consist of one common share and one share purchase warrant (a "Warrant") of the Company. Each Warrant will entitle the holder to purchase one common share for a period of three years from closing at a price of $0.42 per share. Closing is expected to occur on or about February 19, 2010.

The proceeds received from the sale of the Units will be used to fund programs on the Company's Spanish Mountain and Thunder Ridge (Spanish Creek) properties and for general working capital. All of the securities issued in connection with the private placement will be subject to a four month hold period. The private placement is subject to the acceptance of the TSX Venture Exchange.

Appointment

Mr. Corman graduated with a Bachelor of Science degree in geology from Rensselaer Polytechnic Institute in Troy, New York, in 1961 and obtained Professional Engineer status in Ontario in 1972. He has 30 years experience as a senior corporate officer of publicly listed companies in Canada and the United States. He has extensive expertise in mineral and geothermal exploration and development, property evaluation and acquisition, project financing, and corporate management. From 1995 to 2006, Dale was Chairman of the Board of Directors and Chief Executive Officer of Western Silver Corporation. He is currently President and Chief Executive Officer of Western Copper Corporation.

The Company also reports that it has granted options to acquire an aggregate of 300,000 common shares of the Company to the incoming director at an exercise price of $0.36 until February 9, 2015. The foregoing is subject to regulatory acceptance.

Mr Brian Groves, President and Chief Executive Officer of the Company stated, "Dale's skills strengthen and complement those of the other directors. We are pleased to have Dale join the Board as we continue to focus on the advancement of the Company and its projects."

About Spanish Mountain

Spanish Mountain is an exploration company focused on advancing its flagship Spanish Mountain gold project in central southern British Columbia. The Company has a current cash position of $2.5 million and has applied for Mineral Exploration Tax Credit refund from the Province of British Columbia totaling $1.9 million. These funds are expected to be received in the first quarter of 2010. For more information, please visit www.spmtngold.com.

On Behalf of the Board,

SPANISH MOUNTAIN GOLD LTD.

Brian Groves, President

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing and exploration activities, the interpretation of drilling results and other geological data, risks associated with the estimation of mineral resources and the geology, grade and continuity of mineral deposits, project cost overruns or unanticipated costs and expenses -- that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither the 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.

Contact Information

  • Spanish Mountain Gold Ltd.
    Bill Gillies
    (604) 601-3651
    www.spmtngold.com
    or
    B&D Capital Partners
    Kris Davenport
    (604) 685-6465