Santa Barbara Resources Limited

July 08, 2010 13:08 ET

Santa Barbara Resources Limited: Initial Public Offering Completed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2010) -

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

Santa Barbara Resources Limited (the "Company") is pleased to announce that it has completed its initial public offering (the "Offering") which raised aggregate gross proceeds to the Company of $3,866,250.

The Company issued 5,155,000 units (each a "Unit") at a purchase price of $0.75 per unit. Each Unit consists of one common share of the Company (a "Share") and one-half of one transferable common share purchase warrant (each whole warrant, a "Warrant") of the Company. Each whole Warrant entitles the holder to purchase one common share of the Company (a "Warrant Share") at any time on or before July 7, 2012 at an exercise price of $1.00 per Warrant Share.

The Offering was sold through the Company's agents, Dundee Securities Corporation and PI Financial Corp. (collectively, the "Agents"). The Company has granted to the Agents an over-allotment option (the "Over-Allotment Option") for market stabilization purposes which is exercisable no later than 30 days after the closing of the Offering, to cover over-allotments. If the Over-Allotment Option is exercised by the Agents, the Company will issue (i) up to 511,667 additional Units; (ii) up to 255,833 additional Warrants; or (iii) any combination of additional Units and additional Warrants so long as the aggregate number of additional Shares does not exceed 511,667 and the aggregate number of additional Warrants does not exceed 255,833. The purchase price of each additional Unit under the Over-Allotment Option is $0.75 per additional Unit and the purchase price of each additional Warrant under the Over-Allotment Option is $0.03 per additional Warrant.

As consideration for the services provided by the Agents to the Company, the Agents received an aggregate cash commission of $209,988, and an aggregate of 227,606 non-transferable agents' warrants (each an "Agents' Warrant"). Each Agents' Warrant is exercisable to acquire up to one common share in the capital of the Company (an "Agents' Warrant Share") at an exercise price of $0.75 per Agents' Warrant Share exercisable at any time on or before July 7, 2012.

The Company is engaged in the business of mineral exploration in Peru and Ecuador. The Company's two principal properties are the Sancos Project and the Antalla Project, both located in Peru.

The Sancos Project is located in the Ayacucho Region of Peru. Access roads exist to the defined exploration targets. The property hosts a large high sulphidation epithermal gold-silver mineralized system. To date three gold mineralized areas, West, Central and East, are identified by Santa Barbara's systematic trench and outcrop sampling.

Results from preliminary metallurgical tests indicate that the gold is easily leached from oxidized rock, even at low grades. A 4,000 metre drill program is scheduled to commence in October 2010, testing all three target zones for bulk mineable potentially heap leachable mineralization.

The Antalla Project is also located in the Ayacucho Region. The property contains a low sulphidation gold-silver vein. A diamond drill campaign is planned for 2011, following further surface evaluation. The initial drill program will test the potential presence of a bonanza grade mineralized zone at depth and consist of approximately 2,400 metres in eight to twelve holes.

The Company's other properties are the Surapata Project located in Peru, and the La Encrucijada Project and Cascabel Project, both of which are located in Ecuador.

Proceeds from the Offering will be used to fund exploration activities on the Sancos and Anatalla projects in Peru and for general working capital purposes.

It is expected that the Company's common shares will commence trading on the TSX Venture Exchange at the opening of the market on July 9, 2010 under the trading symbol "SBL".

ON BEHALF OF THE BOARD

Christoph Lassl, President and Chief, Executive Officer

The offered securities will not be registered under the United States Securities Act of 1933, as amended, or any applicable state securities laws and may not be offered or sold in the United States absent such registration or an applicable exemption from such registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the offered securities in any jurisdiction.

Address: Edificio In-Luxor - Oficina 102, Camilo Destruge N24-633 y Francisco Salazar, P.O. Box 17-07-9719, Quito, Ecuador

Neither the 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

  • Santa Barbara Resources Limited
    Christoph Lassl
    President and Chief Executive Officer
    593-2-2904164
    593-2-2556204 (FAX)
    christoph@santabarbara.com.ec