St. Eugene Mining Corporation Ltd.

St. Eugene Mining Corporation Ltd.

March 30, 2010 08:42 ET

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

TORONTO, ONTARIO--(Marketwire - March 30, 2010) - St. Eugene Mining Corporation Ltd. (TSX VENTURE:SEM) ("St. Eugene" or the "Company") announces a non-brokered private placement offering of up to 4,000,000 Units at a price of $0.085 per Unit for gross proceeds of up to $340,000. Each Unit shall be comprised of one flow-through common share and one-half of one Purchase Warrant. Each full Purchase Warrant shall entitle 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, or earlier pursuant to the acceleration terms set out below.

The proceeds shall be allocated to the Company's Canadian projects, namely, activities associated with re-commissioning the Tartan Lake Gold Mine, as well as diamond drilling at the Amisk Lake Gold property near Flin Flon, MB.

The Offering will be made to residents of any Canadian Province in reliance upon applicable exemptions from registration and prospectus requirements. 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 shall be subject to a hold period of four months from the date of closing. 

A finders fee equal to 7% of the gross proceeds raised, in addition to the issuance of a number of Compensation Warrants equal to 7% of the number of Units issued, shall be paid to qualifying arms length finders. Each Compensation-Warrant shall entitle 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 (Sask), host to the Laurel Lake gold deposit, in partnership with Claude Resources Inc. (see news release dated March 29,2010).

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