Sanatana Resources Inc.

Sanatana Resources Inc.

September 10, 2014 15:39 ET

Sanatana Announces Private Placement and Warrant Exercise Incentive Program

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 10, 2014) -


Sanatana Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA) has arranged a non-brokered private placement of 2,500,000 flow-through units (the "FT Units") at $0.12 per FT Unit for gross proceeds of up to $300,000 (the "Offering"). Each FT Unit will consist of one flow-through common share in the capital of the Company (a "FT Share") and one-half of one share purchase warrant (each whole warrant, a "FT Unit Warrant"). Each FT Unit Warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the Company (a "FT Unit Warrant Share") at a price of $0.15 per FT Unit Warrant Share for a period of 24 months from the closing of the Offering.

The Company has also arranged a warrant exercise incentive program (the "Incentive Program") to encourage the exercise of all the non-flow-through common share purchase warrants issued as part of the Company's December 2013 flow-through private placement (the "Eligible Warrants") for further gross proceeds of up to $275,000. The Incentive Program is summarized below.

Summary of the Incentive Program

The Eligible Warrants were originally issued pursuant to the Company's private placement which closed on December 20, 2013. In total, there are 2,750,000 Eligible Warrants exercisable until December 20, 2015, to acquire 2,750,000 non-flow-through common shares in the capital of the Company at an exercise price of $0.10 per non-flow-through common share.

Pursuant to the terms of the Incentive Program, the holder of the Eligible Warrants may surrender the Eligible Warrants to the Company for cancellation and concurrently subscribe for 2,750,000 units (the "Units") at a price of $0.10 per Unit for gross proceeds of up to $275,000. Each Unit will consist of one non-flow-through common share in the capital of the Company and one whole share purchase warrant (an "Incentive Program Warrant"). Each Incentive Program Warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the Company (an "Incentive Program Warrant Share") at a price of $0.12 per Incentive Program Warrant Share for a period of 12 months from the closing of the Incentive Program.


The Offering and the Incentive Program are subject to applicable Canadian prospectus exemptions being available along with a number of conditions, including, but not limited to, receipt of all necessary corporate approvals and TSX Venture Exchange approval. All securities issued in connection with the Offering and the Incentive Program will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. The proceeds from the Offering and the Incentive Program will be used for mineral exploration and development for the Company's Watershed Property in Ontario and general working capital purposes respectively.

About the Company

Sanatana Resources Inc. is a Canadian mineral exploration and development company focused on its Watershed Property in Ontario. Sanatana entered into an option and joint venture agreement with Trelawney Augen Acquisition Corp. (formerly Augen Gold Corp.) ("TAAC") which grants Sanatana an option to acquire up to 51% of the Watershed Property consisting of 46 mining claims totalling approximately 19,006 acres and located within the townships of Yeo, Chester, Neveille and Benneweis. As at November 28, 2012, Sanatana exercised its first option and is the legal and beneficial owner of 50% of the Watershed Property. Sanatana has until March 23, 2016, to decide whether to exercise its right to acquire a further 1% in the Watershed Property.

In June 2012, IAMGOLD Corporation completed its acquisition of Trelawney Mining and Exploration Inc. and became the sole indirect shareholders of TAAC. In 2013, Sanatana expanded the Watershed Property by acquiring, for the sole benefit of Sanatana and TAAC, a 20% interest in three additional mining claims located in Yeo and Chester Townships, Ontario. In addition to the Watershed Property, Sanatana also has exploration property in Saskatchewan. With an experienced management team and board of directors, the Company has the ability required to identify, develop and fund economic mineral properties. Sanatana is based in Vancouver and is listed on the TSX Venture Exchange (TSX-V: STA).


Peter Miles

President and Chief Executive Officer

Cautionary Statement Regarding "Forward-Looking" Information

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "plans", "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Sanatana's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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