San Gold Corporation

San Gold Corporation

May 01, 2007 09:52 ET

San Gold Corporation Announces Private Placement Offering

BISSETT, MANITOBA--(CCNMatthews - May 1, 2007) -


San Gold Corporation (the "Corporation")(TSX VENTURE:SGR) today announced the intention of the Corporation to raise approximately $20 million through a marketed best efforts private placement (the "Offering") of units of the Corporation (the "Units"). Each Unit will consist of one common share of the Corporation (a "Common Share") and one half of one Common Share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to acquire one Common Share for a period of 24 months from the closing of the Offering. The Corporation has retained a syndicate of agents led by CIBC World Markets Inc. and including Blackmont Capital Inc. and Haywood Securities Inc. (the "Agents"). The Corporation has granted the Agents the option to increase the size of the Offering by up to $5 million at any point prior to the closing of the Offering.

The net proceeds of the Offering will be used for the development of the Corporation's third Manitoba gold mine, the new Cartwright Mine, the development of deep high grade gold zones in the Rice Lake Mine, the continued development of the San Gold #1 Mine, and the expansion of milling capacity above the current 1,250 ton per day limit as well as for general corporate purposes including working capital.

All the terms of the Offering are subject to the approval of the TSX Venture Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

San Gold Corporation is a junior gold producer focused on the Rice Lake Region of Manitoba. The Corporation's shares trade on the TSX Venture Exchange under the symbol SGR.

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Corporation's management on the date the statements are made. The Corporation undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • San Gold Corporation
    Dale Ginn
    Chief Executive Officer
    (204) 794-5818 or Toll Free 1-800-321-8564