WINNIPEG, MANITOBA--(Marketwired - Sept. 12, 2013) - San Gold Corporation (TSX:SGR) (OTCQX:SGRCF) ("San Gold") today announced the closing of its previously announced private placement offering (the "Offering"). At the closing of the Offering, San Gold issued 32,000,000 units ("Units") at a price of $0.125 per Unit for aggregate gross proceeds of $4,000,000. The Units were all purchased by Sprott Asset Management LP on behalf of various funds managed by it.
Each Unit consists of one common share of San Gold (a "Common Share") and one-half of one warrant (a "Warrant"). Each whole Warrant is exercisable into one Common Share at a price of $0.18 for a period of two years from the date of issuance. The net proceeds from the sale of the Units will be used for the development of San Gold's mineral properties and for general corporate purposes.
All securities issued will be subject to a four month hold period. The closing of the Offering is subject to the final approval of the Toronto Stock Exchange.
Primary Capital Inc. acted as a finder for the Offering and received a finder's fee of $200,000, which was paid in Units at a deemed price of $0.125 per Unit. Accordingly, an additional 1,600,000 Common Shares and 800,000 Warrants were issued to Primary Capital Inc.
About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba. San Gold employs more than 420 people and is committed to the highest standards of safety and environmental stewardship. San Gold is listed on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release may include certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, the use of the net proceeds from the Offering, are forward-looking statements that involve various risks and uncertainties. Except as required by applicable law, San Gold does not assume any obligation to update, or to publicly announce the results of any change to, any forward-looking statement contained herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements.