St Andrew Goldfields Ltd.
TSX : SAS

St Andrew Goldfields Ltd.

May 06, 2009 08:30 ET

St Andrew Achieves Its US$20 Million Financing Objective by Closing a US$4 Million Royalty Financing With Franco-Nevada

OAKVILLE, ONTARIO--(Marketwire - May 6, 2009) -

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

St Andrew Goldfields Ltd. (TSX:SAS) ("St Andrew" or the "Company") is pleased to announce that it has closed on May 5th, 2009 its previously announced royalty financing pursuant to which the Company granted Franco-Nevada Corp. ("Franco-Nevada") a 4% NSR royalty on its Hislop Project for gross proceeds of US$4.0 million. The royalty is subject to an annual minimum royalty payment-in-kind of 1,200 ounces of gold payable in equal monthly instalments commencing in February 2010, for a maximum of 8,000 ounces of gold, with the minimum royalty payments to be credited against future royalty obligations. The Company has also granted Franco-Nevada a senior security interest in its Hislop property until the 8,000 ounces have been paid.

The completion of this financing, in conjunction with the US$16.2 million Senior Gold Notes financing completed on April 21, 2009, allows the Company to have sufficient cash to put the Holloway mine into production by the fourth quarter of 2009, to complete a National Instrument 43-101 compliant technical report on the Hislop Project in June 2009 which it is anticipated will enable a positive production decision to be made on Hislop and to advance the development of the Hislop Project.

About St Andrew

St Andrew is a gold mining and exploration company with operations in Timmins, Ontario. St Andrew controls a large land position in the Timmins Mining Camp and an extensive land position at Eskay Creek in northern British Columbia.

FORWARD LOOKING STATEMENTS

This news release contains forward-looking information under applicable securities laws, concerning St Andrew's business, operations, financial performance, condition and prospects, as well as management's objectives, strategies, beliefs and intentions. Forward looking information is frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "intend" and similar words referring to future events and results, including in respect of the intended use of proceeds of the financings, the restart of mining at the Holloway mine, the intention and timing necessary to complete a resource estimate of the Hislop Project and the subsequent development of production at the Hislop Project. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward looking information. Factors that may cause actual results to vary materially include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, delay or inability to raise additional financing on satisfactory terms, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions and changes in conditions in the financial markets. Readers are cautioned not to place undue reliance on this forward-looking information as actual results may differ materially from those expressed or implied in the forward looking information. St Andrew does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Contact Information

  • St Andrew Goldfields Ltd.
    Jacques Perron
    President and CEO
    1-800-463-5139 or (905) 815-9855
    (905) 815-9437 (FAX)
    jperron@standrewgoldfields.com
    or
    St Andrew Goldfields Ltd.
    Ben Au
    CFO and VP Finance & Administration
    1-800-463-5139 or (905) 815-9855
    (905) 815-9437 (FAX)
    bau@standrewgoldfields.com