Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

October 18, 2010 16:44 ET

Sage Closes Flow-Through Private Placement

TORONTO, ONTARIO--(Marketwire - Oct. 18, 2010) - Sage Gold (TSX VENTURE:SGX) is pleased to announce that it has closed a non-brokered private placement of approximately 3,690,908 flow-through units at Cdn $0.22 per unit, each unit consisting of one (1) common share plus one-half (1/2) non flow-through common share purchase warrant for gross proceeds of Cdn $812,000.

Each whole common share purchase warrant shall entitle the holder to purchase one (1) additional common share at the exercise price of $0.33 for a period of two (2) years from the closing date of the offering. If the Company's shares trade at or above $0.44 per share for 21 consecutive trading days, the Company may, at any time after the expiry of the statutory hold period, accelerate the expiration of the Warrants upon not less than 30 days written notice by the Company, and thereafter repurchase any unexercised Warrants at $0.001 per underlying common share.

MineralFields Group has subscribed to $400,000 of the flow-through private placement financing.

The Company may pay finder's fees of up to 8% cash plus options up to 8% of the number of units sold by the finders. The warrants shall expire 24 months after the closing of the offering.

All securities are subject to a four month hold period and are subject to final approval of the TSX Venture Exchange.

Although the TSX Venture Exchange has conditionally approved this private placement, all closings of this private placement are subject to final acceptance from the Exchange.

The gross proceeds of the offering will be used to fund the exploration and development of the Clavos mine near Timmins, Ontario and the exploration of the Company's properties in the Beardmore-Geraldton area of NW Ontario.

About MineralFields, Pathway and First Canadian Securities®

MineralFields Group (a division of Pathway Asset Management) based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and

Mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities®,(a division of Limited Market Dealer Inc.), is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions and mining industry consulting services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities®.

"We are very pleased to be continuing our relationship with MineralFields Group as we further explore our properties in Ontario," said Nigel Lees, President and CEO.

SAGE is a mineral exploration and development company which has primary interests in exploration and development properties in Ontario. Its main properties are the Clavos Gold mine in Timmins and its exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com

This release was prepared by management of the Company who takes full responsibility for its contents. This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward Looking Information" within the meaning of applicable Canadian securities legislation. Some forward looking statements and forward looking information contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. The Company disclaims any obligation to update forward-looking statements.

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.

Contact Information

  • Sage Gold Inc.
    Nigel Lees
    President and C.E.O.
    416-204-3170
    416-260-2243 (FAX)
    or
    Sage Gold Inc.
    Mike O'Brien
    Manager/Investor Relations
    416-204-3170
    416-260-2243 (FAX)
    www.sagegoldinc.com