St. Eugene Mining Corporation Ltd.

St. Eugene Mining Corporation Ltd.

April 30, 2010 08:15 ET

St. Eugene Mining Corporation Announces Completion of Flow Through Financing for Amisk Lake Diamond Drilling and Tartan Lake Gold Mine

TORONTO, ONTARIO--(Marketwire - April 30, 2010) - St. Eugene Mining Corporation Ltd. (TSX VENTURE:SEM) ("St. Eugene") announces the closing of a non-brokered private placement flow-through offering of 4,481,882 Units at a price of $0.085 per Unit for gross proceeds of $380,960. Each Unit is comprised of one flow-through common share and one-half of one Purchase Warrant. Each full Purchase Warrant entitles the holder to acquire one non-flow through common share of the Company at a price of $0.11 per share for 18 months from closing.

The proceeds will be allocated to the Company's Canadian projects, namely, activities associated with the Tartan Lake Gold Mine and the Amisk Lake Gold property near Flin Flon, Manitoba.

The closing of the private placement is subject to the receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the offering are subject to a hold period of four months from the date of closing.

A cash finder's fee was paid totaling $23,044.70, in addition to the issuance of 271,114 Compensation Warrants to qualified arms length finders. Each Compensation-Warrant entitles the finder to acquire one non-flow through common share of the Company at a price of $0.085 for a period of 12 months.

If on any 20 consecutive trading days after the issuance of the Purchase Warrants, the closing sales price (or closing bid price on the days when there are no trades) of the common shares of St. Eugene on the TSX Venture Exchange is greater than $0.20, the expiry date of the Purchase Warrants shall accelerate and be automatically amended to be the 30th day after the date on which the Company gives notice to the Warrant holder of such acceleration.

About St. Eugene:

St. Eugene Mining Corporation owns a 100% interest in the Tartan Lake Gold Mine, a historic Manitoba gold producer that was operated by Granges Inc. prior to being shut down in 1989. The Company is currently evaluating budgets and planning as it relates to the re-commissioning of Tartan. In addition, St. Eugene holds a 35% operating interest in the advanced-stage Amisk Lake Gold Project (Saskatchewan), host to the Laurel Lake gold deposit, in partnership with Claude Resources Inc. (see news release dated March 29, 2010 for further details).

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 news release.

Contact Information

  • St. Eugene Mining Corporation Ltd.
    Jennifer L. Boyle, B.A., LL.B.
    President and Chief Executive Officer
    (647) 430-0966 (work) or 416-904-2714 (cell)
    St. Eugene Mining Corporation Ltd.
    Rolly Trenaman
    Chairman of the Board
    604-669-5775 (work)