St. Eugene Mining Corporation Ltd.
TSX VENTURE : SEM

St. Eugene Mining Corporation Ltd.

December 31, 2010 16:06 ET

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

TORONTO, ONTARIO--(Marketwire - Dec. 31, 2010) -

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

St. Eugene Mining Corporation Limited (TSX VENTURE:SEM) ("St. Eugene" or the "Company"), announces the closing of a non-brokered private placement offering for aggregate gross proceeds of $4,000,000, by the issuance of: (i) 7,000,000 flow through common shares at a price of $0.25 per flow-through common share ($1,750,000); and (ii) the issuance of 11,250,000 Units at a price of $0.20 per Unit ($2,250,000). Each Unit is comprised of one common share and one-half of one Purchase Warrant. Each full Purchase Warrant entitles 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 general working capital, and to the Company's Canadian projects, more particularly, toward further exploration at the Amisk Lake Gold property (Saskatchewan) located at the westerly tip of the Flin Flon Greenstone Belt, toward new exploration activities at the Tartan Lake Mine Project in Flin Flon, Manitoba, as well as to activities that pertain to the ongoing assessment of a development plan at Tartan Lake Mine.

The Offering was made in reliance upon applicable exemptions from registration and prospectus requirements. The closing of the private placement is subject to the receipt of final approval of the TSX Venture Exchange. All securities issued pursuant to the offering are subject to a hold period of four months. The Company paid an aggregate $223,800, in addition to the issuance of 1,025,700 Compensation Warrants, to eligible finders in connection with this offering. Each Compensation Warrant entitles 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.

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 Boyle, B.A., LL.B.
    Chief Executive Officer
    647-430-0966 (work) or 416-904-2714 (cell)
    jennifer@capexgroupinc.com