Savant Explorations Ltd.

Savant Explorations Ltd.

October 06, 2009 19:57 ET

Savant Explorations Ltd. Closes $998,960 Unit Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2009) -


Savant Explorations Ltd. ("Savant" or the "Company") (TSX VENTURE:SVT) announces the closing of the previously-announced (see September 11, 2009 News Release) non-brokered private placement offering of Units (the "Offering"). Savant has issued 12,499,500 Units for gross proceeds of $999,960. Each Unit was priced at $0.08 and consisted of one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $0.11 for a two year period expiring on October 6, 2011. Finders fees aggregating $31,500 were paid on Units issued to certain subscribers, of which $25,000 was paid in Units.

The securities sold have a four month hold period expiring on February 6, 2010. The Units were sold pursuant to applicable securities law exemptions.

The net proceeds will be used to advance Savant's mineral properties, and for working capital and general corporate purposes. Savant has a portfolio of exploration properties in Mexico, Canada, the USA and Chile. The Company focus is currently on its Vinata silver-zinc property in North Central Mexico. Vinata is located in the prolific Central Mineral Belt that hosts numerous large silver-zinc-lead deposits at Santa Eulalia and Naica. Collectively; these mines are estimated to have produced over 750 million ounces of silver plus significant zinc and lead. The Vinata Project has excellent potential for the discovery of a new major silver-zinc-lead deposit within this mining district.

Vinata was recently optioned to Selwyn Resources Ltd. which, after this financing, now holds an approximate 23% share interest in the Company. The Vinata option agreement grants Selwyn an option to acquire an initial 50% interest in the Vinata Property and upon exercising that option, an option for Selwyn to increase its interest to 55% by making additional expenditures. Selwyn is committed to a minimum US$500,000 exploration expenditure by January 15, 2010. The work program, which is underway, includes 1800 metres of drilling, planned to commence shortly, to test several prime targets for high grade silver-zinc-lead mineralization.

This press release contains forward-looking statements concerning Savant and the Vinata Property. These forward-looking statements are based upon the reasonable beliefs of Savant and its management as of the date of this news release; however, forward-looking statements involve risks and uncertainties and are based upon factors that may change and assumptions that may prove, with the passage of time, to be incorrect as a result of exploration and other risk factors associated with mineral exploration and development that are beyond the control of Savant. Accordingly, undue reliance should not be placed upon such statements. If factors materially change or assumptions are materially incorrect, the actual results, performance or achievements of Savant may be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Savant does not undertake any obligation to update or revise any forward-looking statements to reflect new information, future events or otherwise, except as required by applicable law.

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.

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