San Marco Resources Inc.

San Marco Resources Inc.

October 15, 2012 08:30 ET

San Marco to Raise $1,040,000 in Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2012) - San Marco Resources Inc. (TSX VENTURE:SMN) announces that it is arranging a non-brokered private placement of 8,000,000 units at $0.13 per unit for gross proceeds of $1,040,000.

Each unit will consist of one common share and one-half of a non-transferable warrant, each whole warrant exercisable to purchase a further share for 18 months at $0.26. After the four month restricted resale period expires, the expiry of the warrants may be accelerated if the closing price of the Company's shares exceeds $0.45 per share for 20 consecutive trading days and the Company gives notice to the warrant holders that the warrants will expire in 30 days.

Finders' fees equal to 6% of the gross proceeds may be paid cash or shares. The size of the placement may be increased, or reduced, at the Company's option and is subject to regulatory approval.

The proceeds of the placement will be used for:

  • Continuing exploration activities on the Company's Angeles property, including an expanded surface magnetometer survey, extending soil sampling grid, surface sampling of newly discovered mineralized structures, all in preparation for and commencement of diamond drilling;
  • Additional property acquisitions; and
  • Working capital.

The placement is expected to close on or about October 29, 2012.

San Marco also announces that Rick Peterson has been retained to provide strategic development and corporate finance advisory services. As part of his remuneration, a stock option to purchase 250,000 shares has been issued to Mr. Peterson, according to the Company's stock option plan.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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