St. Eugene Mining Corporation Ltd.

St. Eugene Mining Corporation Ltd.

December 17, 2010 17:23 ET

St. Eugene Mining Corporation Announces $4M Private Placement Offering

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2010) - St. Eugene Mining Corporation Limited (TSX VENTURE:SEM) ("St. Eugene" or the "Company"), announces a non-brokered private placement offering of up to 7,000,000 flow through common shares at a price of $0.25 per flow-through common share for gross proceeds of $1,750,000, in addition to the issuance of up to 11,250,000 Units at a price of $0.20 per Unit for gross proceeds of up to $2,250,000. Each Unit shall be comprised of one common share and one-half of one Purchase Warrant. Each full Purchase Warrant shall entitle the holder to acquire one common share of the Company at a price of $0.35 per share for 15 months from closing, or earlier pursuant to the acceleration terms set out below.

The proceeds shall be allocated to the Company's Canadian projects, namely, activities associated with re-commissioning the Tartan Lake Gold Mine, further exploration at the Amisk Lake Gold property near Flin Flon, Manitoba, and to general working capital.

The Offering will be made to residents of any Canadian Province in reliance upon applicable exemptions from registration and prospectus requirements. The closing of the private placement is subject to the receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the offering shall be subject to a hold period of four months from the date of closing.

A finders fee equal to 6% of the gross proceeds raised, in addition to the issuance of a number of Compensation Warrants equal to 6% of the number of Units issued, shall be paid to eligible finders. Each Compensation Warrant shall entitle the finder to acquire one common share of the Company at a price of $0.25 for a period of 15 months.

If on any 20 consecutive trading days after the issuance of the Purchase Warrants, the closing sales price (or closing bid price on the days when there are no trades) of the common shares of St. Eugene on the TSX Venture Exchange is greater than $0.45, the expiry date of the Purchase Warrants shall accelerate and be automatically amended to be the 30th day after the date on which the Company gives notice to the Warrant holder of such acceleration.

Corporate Update

The Company further announces that Ms. Jennifer Boyle, Ms. Pamela Strand, Ms. Julie Lassonde, and Mr. Wes Hanson were elected as members of the board of directors at the Company's Annual and General Meeting of Shareholders on December 7, 2010.

The Directors appointed Mr. Wes Hanson as Chairman of the Board and Ms. Jennifer Boyle as Chief Executive Officer and Interim President.

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.

Contact Information

  • St. Eugene Mining Corporation Limited
    Jennifer L. Boyle, B.A., LL.B.
    Chief Executive Officer
    647- 430-0966 (work) or 416-904-2714 (cell)