San Gold Corporation
TSX VENTURE : SGR

San Gold Corporation

July 13, 2010 15:15 ET

San Gold Corporation Announces $130 Million "Bought Deal" Financing

BISSETT, MANITOBA--(Marketwire - July 13, 2010) -

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

San Gold Corporation ("San Gold" or the "Corporation") (TSX VENTURE:SGR) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by Dundee Securities Corporation and BMO Capital Markets and including CIBC World Markets Inc., Raymond James Ltd., TD Securities Inc., Cormark Securities Inc., Wellington West Capital Markets Inc., Mackie Research Capital Corporation, Stonecap Securities Inc. and Toll Cross Securities Inc. (the "Underwriters").

Under the agreement, the Underwriters have agreed to purchase on an underwritten basis 32,500,000 common shares (the "Common Shares") of San Gold at a price of $4.00 per Common Share for total gross proceeds to the Corporation of $130,000,000 with the Underwriters having an over-allotment option to purchase up to an additional $19,500,000 of Common Shares. If the over-allotment option is exercised in full, gross proceeds will result in $149,500,000. The proceeds of the offering shall be used primarily for further exploration and development on the Corporation's Rice Lake Project in Manitoba, for the purchase of equipment and for general and administrative expenses and working capital.

The Common Shares to be sold under the agreement will be offered by way of a short form prospectus in all the Provinces of Canada except Quebec and the Common Shares to be sold under this offering will be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

The offering is scheduled to close on August 4, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and other applicable securities regulatory authorities.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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

  • San Gold Corporation
    Dale Ginn
    CEO
    (204) 794-5818
    or
    San Gold Corporation
    Investor Information
    1-800-321-8564
    www.sangoldcorp.com