Sona Resources Corporation

Sona Resources Corporation

December 06, 2010 09:25 ET

Sona Announces Pricing of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2010) -


Sona Resources Corp. (the "Company" or "Sona") (TSX VENTURE:SYS)(FRANKFURT:QS7) is pleased to announce that it has priced its previously announced private placement, led by Stonecap Securities Inc. (see news release dated November 19, 2010). The Company will proceed with a private placement of up to 1,600,000 flow-through units (the "FT Units") at a price of $1.25 per FT Unit, and up to 2,727,273 non-flow-through units (the "Units") at a price of $1.10 per Unit, for total gross proceeds of up to $5 million.

Each FT Unit consists of one flow-through common share and one-half of a warrant (each whole warrant, a "Warrant"), with each Warrant entitling the holder to purchase, for a period of 24 months following the closing date, one additional common share of the Company at a price of $1.50. Each Unit consists of one non-flow-through common share and one-half of a Warrant.

The net proceeds from the sale of the Units shall be used for working capital and general corporate purposes, and for exploration at the Company's mineral projects. Proceeds from the sale of the FT Units will also be used for exploration at the Company's mineral projects. These will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced for the 2010 tax year.

All securities issued pursuant to the private placement will be subject to a four-month hold period.

About Sona Resources Corp.

Since its inception in 1990, Sona has engaged in exploration activities at its mineral properties in Canada and the United States, as well as small-scale gold production at its flagship property, the 100 percent owned Blackdome Gold Mine ("Blackdome"), in south-central British Columbia, 250 kilometres north of Vancouver. At Blackdome, the indicated mineral resources are estimated to be 144,500 tonnes, grading 11.29g Au/t and containing 52,600 ounces of gold, and the inferred resource is estimated to be 90,600 tonnes, grading 8.79g Au/t (news release May 4, 2010). At its 100 percent owned Elizabeth Gold Property, 30 kilometres south of the Blackdome Gold Mine, Sona has outlined an inferred gold resource of 522,900 tonnes, grading 12.3g Au/t and containing 206,100 ounces of gold (news release June 8, 2009). Sona aims to bring the fully permitted Blackdome mill back into production over the next three years at a rate of 200 tonnes per day, with feed from the former-producing Blackdome Gold Mine and the Elizabeth Gold Property. A positive Preliminary Economic Assessment by Micon International Ltd. (news release May 28, 2010), at a gold price of $950 per ounce over an eight-year period, has estimated pre-tax cash flow of $27 million and pre-production capital costs of $21 million.

Sona holds a 100 percent interest in two other promising properties: The Callaghan Project is located in Nevada, within 80 kilometres of several producing mines, and is underlain by the Roberts Mountain Thrust, a major structural setting for gold deposits. The Montgolfier Project is located in Quebec, 40 kilometres east of the multimillion-ounce Casa Berardi Mine gold deposit.

This news release contains certain forward-looking statements, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results, or any other occurrence.

Neither the TSX Venture Exchange nor its regulation services provider, as defined in the policies of the TSX Venture Exchange, accepts responsibility for the adequacy or accuracy of this release.

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