San Gold amends terms of Series B debentures

2007-10-18 19:56 ET - News Release

Mr. Dale Ginn reports

SAN GOLD CORPORATION ANNOUNCES AMENDMENT TO TERMS OF DEBENTURES

San Gold Corp. has amended the terms of the corporation's $6,734,000 principal amount of issued and outstanding Series B 10-per-cent two-year senior secured convertible redeemable debentures, which mature on Oct. 18, 2008. Interest on the debentures is 10 per cent per year, payable annually on the first and second anniversary of the initial issuance of the debentures, which was Oct. 18, 2006. Pursuant to the terms of the debentures, holders of debentures are entitled to elect to receive interest on the debentures payable in cash or in common shares of the corporation issued at the market price of the common shares on the applicable interest payment date, calculated in accordance with the policies of the TSX Venture Exchange. The corporation and Computershare Trust Company of Canada, the indenture trustee for the debentures, have entered into a supplemental trust indenture, which amends the terms of the debentures to provide that the holders of debentures may elect to receive interest on the debentures payable in common shares issued at a 10-per-cent discount to the market price of the common shares at both the first and second anniversaries of the issuance of the debentures.

Any common shares issued to holders of debentures that elect to receive their interest payment in common shares instead of cash shall be restricted from transfer for a period of four months and a day in accordance with applicable securities laws and the policies of the exchange.