Sargold Resource Corporation
TSX VENTURE : SRG
FRANKFURT : DU4

Sargold Resource Corporation

June 13, 2007 17:55 ET

Sargold Completes Private Placement-Raises $2.8 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 13, 2007) - Sargold Resource Corporation (TSX VENTURE:SRG)(FRANKFURT:DU4) ("Sargold" or the "Company") is pleased to announce it has closed a non-brokered private placement of 14,000,000 units at a price of C$0.20 per unit for gross proceeds of C$2,800,000. Each unit is comprised of one common share and one common share purchase warrant, which entitles the holder to acquire one common share at a price of C$0.25 for a period of two years expiring between June 5, 2009 and June 12, 2009.

The common shares and warrants issued in connection with this private placement are subject to a four-month hold period expiring between October 6, 2007 and October 13, 2007.

The Company paid a finders' fee of $27,750 in connection with the placements. Proceeds from the private placement will be used to fund operating activities and general working capital.

ABOUT SARGOLD RESOURCE CORPORATION. Sargold is a Canadian junior resource company that controls the largest precious metals exploration land area in Sardinia, Italy. The Company holds a 90% interest in the assets, which range from the mine and full processing plant at Furtei, to a host of exploration opportunites at Monte Ollasteddu and the advanced exploration properties at Osilo. The Company trades on the TSX Venture Exchange under the symbol SRG, and the Frankfurt Exchange under the symbol DU4.

ON BEHALF OF THE BOARD OF DIRECTORS,

Richard W. Warke, Chairman, President & Chief Executive Officer

FORWARD-LOOKING STATEMENTS - The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Company's latest annual report and management discussion and analysis. The Company assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

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

Contact Information

  • Sargold Resource Corporation
    Marlo Hamer-Jackson
    Investor Relations Manager
    (604) 687-1717
    (604) 687-1715 (FAX)
    Email: info@sargold.com
    Website: www.sargold.com