St. Eugene Mining Corporation Ltd.
TSX VENTURE : SEM

St. Eugene Mining Corporation Ltd.

December 02, 2009 09:00 ET

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

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 2, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

St. Eugene Mining Corporation Ltd. (TSX VENTURE:SEM) ("St. Eugene" or the "Company") announces that the Tartan Lake Mine has been granted "New Mine" status from the Manitoba Government, enabling certain operating activities to be flow-through eligible.

In planning the upcoming program for the Company's Tartan Lake Mine, the Company announces a non-brokered private placement offering of up to 8,181,818 Units at a price of $0.055 per Unit for gross proceeds of up to $450,000. 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, which may include carrying out eligible flow-through activities on the Company's Tartan Lake Mine project, Flin Flon area of Manitoba, as well as a diamond drill program contemplated on the Laurel Lake portion of the Company's Amisk Lake Gold property near Flin Flon. It is anticipated that this work would be conducted as part of a campaign to up-grade to NI 43-101 compliant resource category.

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 expected to occur on or before December 21, 2009, and 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 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 $0.07 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.

This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the business and financing plans of the Company, timing of future activities by the Company, future anticipated exploration program or mining results, the discovery and delineation of mineral deposits or resources, potential mining scenarios, the success of mineral processing procedures and, business trends and future operating costs. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to, the state of the market for gold or other minerals that may be produced generally, recent market volatility, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through the Company's page on SEDAR at www.sedar.com.

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

  • St. Eugene Mining Corporation Ltd.
    Jennifer L. Boyle, B.A., LL.B.
    President and Chief Executive Officer
    (647) 430-0966 (work)
    416-904-2714 (cell)
    jennifer@capexgroupinc.com
    or
    St. Eugene Mining Corporation Ltd.
    Rolly Trenaman
    Chairman of the Board
    604-669-5775
    tms1@telus.net