Stay Gold Inc.

Stay Gold Inc.

December 15, 2011 11:00 ET

Stay Gold Inc. Announces Non-Brokered Private Placement

HALIFAX, NOVA SCOTIA--(Marketwire - Dec. 15, 2011) - Stay Gold Inc. ("Stay Gold" or the "Corporation") announces its intent to complete a non brokered private placement (the "Private Placement") of (i) up to 2,000,000 flow-through units ("Flow-Through Units") at a price of $0.20 per Flow-Through Unit, and (ii) 1,000,000 units ("Units") at a price of $0.15 per Unit for aggregate gross proceeds of up to $550,000. Each Flow-Through Unit shall be comprised of one (1) common share to be issued as a "Flow-Through Share" within the meaning of the Income Tax Act (Canada) and one (1) common share purchase warrant (a "Warrant"). Each Unit will be comprised of one (1) common share (a "Common Share") of the Corporation and one (1) Warrant. Each Warrant comprising the Flow-Through Units and each Unit entitles the holder thereof to purchase one additional Common Share at an exercise price of $0.25 per Common Share for a period of 24 months following the closing date of the Private Placement. The Private Placement is scheduled to close, in one or more tranches, on or before December 30, 2011.

The Corporation will use the net proceeds of the Private Placement to fund ongoing operations, exploration on its flagship Harrigan Cove property and for general administrative purposes. A finder's fee of up to 10% of the gross proceeds received from the sale of the Flow-Through Units and Units may be paid in cash in connection with certain subscriptions under the Private Placement. The Private Placement serves in lieu of the Corporation's initial public offering which was not completed as a result of lapse of the Corporation's prospectus dated August 29, 2011.

Assuming all Common Shares are issued pursuant to the Private Placement as contemplated above, there will be 13,055,000 Common Shares of Stay Gold issued and outstanding following completion thereof.

About Stay Gold:

Stay Gold Inc. is a gold focused exploration company with a portfolio of high potential gold prospects. The Corporation's strategic land position, located in the historic gold producing region of Nova Scotia, provides a platform for expedient resource development and new discoveries.

The Corporation's Common Shares are not currently listed on a stock exchange and no stock exchange has reviewed or accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information:

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration programs, exploitation activities and events or developments that the Corporation expects, are forward-looking statements. Although the Corporation believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include exploitation and exploration successes, continued availability of financing, and general economic, market or business conditions.

Contact Information

  • Stay Gold Inc.
    Brendan Matheson
    President and CEO
    (902) 832-1137
    (902) 444-3324 (FAX)