Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

July 09, 2010 14:33 ET

Sage Continues Private Placement Activities

TORONTO, ONTARIO--(Marketwire - July 9, 2010) - Sage Gold Inc. (TSX VENTURE:SGX) (the "Company") announces that it is continuing to work towards the completion of a previously announced private placement of up to 11,363,636 common share units (the "Units") at a price of $0.22 per unit, each unit to be comprised of one common share of the Company and one half of one warrant exercisable at $0.33 per common share for two years. If fully completed, the private placement would raise gross proceeds of approximately $2,500,000. 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. This private placement was first announced by the Company in its press release of June, 1, 2010.

Further to the conditional acceptance obtained, the Company has completed 2 closings for this private placement. To date, gross proceeds of $793,660 were raised through the issuance of 3,607,546 Units (excluding warrants issued in partial payment of finder's fees in connection with the financing). (Please see the Company's press releases of June 1, 2010 and June 11, 2010 for details of the first and second closings.)

All securities issued in connection with this financing will be subject to a four-month hold period from the closing date.

The net proceeds of the Offering will be used for the development and exploration of the Borealis Project in Nevada and the Clavos Project near Timmins, Ontario and for general corporate purposes.

The Company wishes to correct the February 24, 2010 News Release outlining the terms of the LOI relating to certain advisory fees payable by Sage to advisors in Sage shares and warrants. The Sage shares and warrants to be issued under an Advisory Agreement disclosed in the February 24, 2010 News Release were to be issued to advisors on a pre-consolidation basis. The shareholders of Sage approved the consolidation of Sage shares on a 1 for 10 basis at the Annual General Meeting of shareholders held on March 31, 2010. The advisory agreement giving rise to the payment of advisory fees was amended on May 7, 2010 and provides for the issue of 231,430 treasury common shares plus 231,430 warrants in the Company exercisable @ $0.44 for a term of 2 years from May 7, 2010 in accordance with Exchange Policy on a post consolidation basis.

SAGE is a mineral exploration and development company which has primary interests in exploration and development properties in Nevada and Ontario. Its main properties are the recently optioned Borealis Gold Property in Nevada and the Clavos Gold property 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