Skyline Gold Corporation
TSX VENTURE : SK

Skyline Gold Corporation

October 05, 2010 13:19 ET

Skyline Gold Increases Flow-Through Private Placement for Deep I.P. Survey and High Grade Gold Exploration Drilling Program

RICHMOND, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2010) - Skyline Gold Corporation (TSX VENTURE:SK) ("the Company"), a company engaged in the exploration for high-grade gold deposits and development of its Bronson Slope project at the Snip Gold Mine camp in north western British Columbia's 'Golden Triangle', is pleased to announce that, subject to obtaining regulatory approval, it has increased the amount of its flow-through financing previously announced on October 1, 2010. Due to strong demand, the private placement financing amount has been increased to 2,500,000 flow-through units at a price of $0.40 per unit for proceeds of $1,000,000.

The proceeds of the placement will be used to investigate the high-grade gold showing on the Snip-1 tenure and the Snip Gold Mine / Bronson Creek gold basin with:

  • A follow-up 1,000 meter diamond drill and surface trenching exploration program to further explore the structure that hosts the high-grade gold mineralization on the Snip-1 mineral tenure announced in the Company's news release dated September 29, 2010; and
  • A 15 line-kilometer deep penetrating induced polarization ("IP") geophysical survey of the Snip Gold Mine / Bronson Creek gold basin. This phase of the exploration program will explore for shallow as well as deep-seated gold targets. The IP program will target gold mineralization in settings that include extensions of the structure that hosts the historic high-grade Snip Gold Mine, the Bronson Slope deposit as well as strike extensions of the Snip-1 high-grade gold zone.
  • A comprehensive compilation of the extensive exploration data that exist for its principal properties and for its recently acquired properties consolidating an extensive land package of highly prospective claims with known anomalies to identify priority targets for exploration during 2011.

Each unit ("Unit") consists of one flow-through common share and one-half of a flow-through common share purchase Warrant. Each Warrant will entitle the holder to purchase one additional flow-through share of the Company at a price of $0.60 per share for a period of 18 months from date of issue. The Units have a hold period that expires 4 months from the date of issue.

The Warrants contain an accelerator clause where, if the closing price of the Company's common shares is at a price equal to or greater than $0.90 for a period of 10 consecutive trading days, the Company will have the right to accelerate the expiry date of the Warrants by giving written Notice to the holders of the Warrants. Warrant holders can then, at the Company's discretion, be given written Notice that the Warrants will expire on the date that is not less than 30 days from the date notice is provided by the Company to the Warrant holders. A 3.5% cash finder's fee will be paid on some of the placement.

ON BEHALF OF THE BOARD OF DIRECTORS

SKYLINE GOLD CORPORATION

David Jensen, P.Eng., President & Chief Operating Officer

Cautionary Statement

Statements in this release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the Company can fulfil such forward-statements and the Company undertakes no obligation to update statements. Such forward looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control.

Neither 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

  • Skyline Gold Corporation
    David Jensen, P.Eng.
    President & Chief Operating Officer
    604 270 3878
    604 270 3858 (FAX)
    www.skylinegold.com